Researchers Claim They Can Predict Returns For Alternative Investments

Can analysts predict returns for alternative investment strategies and used in a hedge fund selection methodology? European researchers studying UCITS fund returns think returns “are predictable.” Several caveats and many algorithmic formulas that add layers of complexity later, the result, the researchers say, is yes, returns can be predicted and they can be used in a hedge fund selection methodology, but there are environmental factors to consider. Regardless of the report conclusion, it exposes the hot topic of beta market environment research in alternative investments. [dalio] Market environments can be understood relative to an algorithmic strategy, but can researchers predict returns? In…