http://www.nytimes.com/2015/06/23/business/the-lo…
Investors, for their part, have sought to place their money with hedge funds that offer long-only funds, according to a Deutsche Bank survey of 435 global hedge fund investors holding half the industry’s $3 trillion in assets under management. Nearly half of those surveyed were already allocated to long-only hedge funds, while 38 percent said that they planned to increase their allocation to such funds.
?
http://www.hedgethink.com/education/equity-long-defined/
I've seen 3 types of funds that could fit into this category:
1) Mirror image of the long book from a L/S fund (for investors who don't want short exposure, but like the managers stock picking) 2) A best ideas portfolio of the HF's 10-15 best stocks from the L/S fund 3) A book that doesn't short so is technically long only, but does use derivatives to hedge downside risk
Besides these examples, it's not uncommon for certain types of credit strategies to be long-only or at least long-biased. Examples include structured credit (where it's hard to directly short/hedge these days), distressed (especially distressed-for-control and funds w a PE/draw-down style), direct lending, trade claims investing, etc. Whether these are "hedge funds" or not is kind of a question of who you ask/who's doing the marketing.
This is a good time to remind everyone that there's not really a "formal"/legal definition of a hedge fund. Generally a hedge fund has at least some of the following characteristics: a) Leverage b) Short selling/hedging c) Alternative assets (bank loans, trade claims, derivatives, etc) d) Alternative strategies (merger arb, activism, bond rel val, etc) e) Incentive fees f) Concentrated positions
Not all "hedge funds" do all (or even most) of these things, and non-hedge fund vehicles can do many if not all to varying degrees. For example PIMCO Total Return (one of the largest mutual funds in the world) uses derivatives, sells short, and uses leverage.
Brave Warrior, Chieftain, ESL, Abrams [?], and New Mountain are a few that I can think of off the top of my head. Being a "hedge fund" pretty much just means you're charging 2 & 20 (or similar) in an LP/GP structure. One can run a long-only investment style that meets these criteria. In fact, more fund managers should be doing just this; the ability to short effectively is extremely rare.
Quam voluptas ut quam magnam explicabo. Quia aspernatur id pariatur accusamus rerum repellat. Nobis saepe qui ut similique ipsam fugit.
Quia sed recusandae error voluptas totam. Non et qui nobis est. Omnis libero libero odio.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...