Infinity Q's Consistent Alpha Should Have Been a 'Red Flag'
There were plenty of signals to warn investors away from Infinity Q’s $1.8 billion Diversified Alpha Fund long before the redemption gates went up, according to a quantitative analysis by Markov Processes International. The fund, a mainstream version of a hedge fund called a liquid alternatives fund, had grown quickly on the back of the prestigious roots of its founder. (Infinity Q Capital Management, founded by James Velissaris, spun out of the family office of TPG’s David Bonderman.) But according to MPI, which uses a returns-based style analysis, the now-liquidating fund produced exce...