Stable Value a free lunch?

Recent cases of alleged fraud involved investors placing billions of dollars in unregistered products attracted by smooth positive returns. Hedge funds and other unregistered investment vehicles do not have a monopoly on “stable” positive returns. In fact, there exists a class of products known as stable value funds that share similar stable return characteristics and […]

March 05, 2009

Recent cases of alleged fraud involved investors placing billions of dollars in unregistered products attracted by smooth positive returns. Hedge funds and other unregistered investment vehicles do not have a monopoly on “stable” positive returns. In fact, there exists a class of products known as stable value funds that share similar stable return characteristics and can be found in many retirement plans. Below are some back-of-the-envelope findings we thought worth pointing out regarding stable returns, stable value funds, and why it is high time to remind ourselves that these products should be evaluated with the same rigor as other investment products.

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