The beta police are on high alert at Cambridge Associates, ferreting out market exposure — a.k.a. beta — in the hundreds of custom-built portfolios under their supervision and telling clients when hedge funds are delivering alpha and, increasingly, when they’re not.
“When there’s a lot of risk in the market, you want to be sure you don’t have too much beta in your hedge fund portfolio because it will participate more fully in market declines,” says David Shukis, head of hedge fund research and consulting at the...
