Challenges in Analyzing PIMCO Total Return and Other Liquid Alternatives

February 05, 2014

Is a given hedge fund manager generating alpha?  Can that alpha be captured through more liquid alternative vehicles?  How can an investor truly reveal a portfolio’s net factor exposures when traditional assets are often being intermingled with credit default swaps, options, futures and leverage?  These questions continue to stymie investors – even though answers may be available right under their noses.  MPI’s patented Dynamic Style Analysis (DSA) model has revolutionized the foundations first laid by Nobel laureate Bill Sharpe, moving beyond his groundbreaking returns-based style analysis (RBSA) to reveal exposures in complex funds that are not well explained by traditional RBSA.  Just as RBSA was created to fill in the gaps that result from holdings-based analysis, DSA now serves to provide additional transparency beyond RBSA in a world of increasingly complex investment vehicles.

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