Experiences with the Repair of the Mitral Valve in Mitral Incompetence

TLDR

Managers with offshore experience are defined as management companies that run offshore hedge funds in addition to UCITS. This article examines the performance of alternative UCITS funds based on manager offshore experience and the presence of an equivalent offshore hedge fund. The authors identify UCITS that have an equivalent offshore hedge fund by replicating its performance with the same or a similar strategy, or via a swap. Across 2008‑2011, offshore‑experienced UCITS showed a modest positive alpha (p = 0.12); those without equivalents had lower volatility and a significant positive alpha, while those with equivalents displayed no mean performance or volatility differences on equally‑weighted indexes but outperformed offshore funds in cross‑sectional analysis, with a sizable regulation‑induced tracking error. Topics include real assets, alternative investments, private equity, mutual funds, passive investing, indexing, developed markets, and performance measurement.

Abstract

This article examines the performance of alternative UCITS funds on the basis of manager offshore experience and, additionally, the existence of an “equivalent” offshore hedge fund. Managers with offshore experience are defined as management companies managing offshore hedge funds in addition to managing UCITS. For a sample period from 2008 to 2011, the authors find that such UCITS have a positive alpha, still with a P-value of 0.12 due to the limited size of the subsamples, which could provide some evidence of offshore manager added value. Among these UCITS, they identify further those that have an equivalent offshore hedge fund whose performance is replicated by using the same or a similar strategy, or through a swap. The authors find that “offshore-experienced” UCITS without offshore equivalents 1) exhibit no meaningful differences in mean performance compared to those with equivalents, but are 2) generally less volatile and show a positive significant alpha at the 95% level. Concentrating then on those with equivalent offshore hedge funds, the onshore-offshore comparison shows no significant differences in mean performance and volatility when they use equally-weighted indexes but an offshore outperformance when they do a cross-sectional study. The authors also find a sizable regulation-induced tracking error. <b>TOPICS:</b>Real assets/alternative investments/private equity, mutual funds/passive investing/indexing, developed, performance measurement