Abstract
Starting from the 1990s hedge funds gained popularity worldwide. In 2011 the
worldwide industry held almost $2 trillion in assets under management. Over the
last decades there was increased diversification in strategies, further widening the
concept of hedge fund category.
Hedge funds generally target absolute and/or high returns and strongly use
derivative assets regarded as ‘risky’ for the general public. In most regulations
hedge funds are not allowed to be sold to the general public considering them as
somehow ‘risky’ investments. A high percentage of hedge funds are domiciled in
remote islands and in offshore locations exploiting loose regulations.
On the other hand hedge fund managers promise more optimal risk-return profile
than classical asset classes. And investors may use them as a tool to reduce their
overall portfolio risk exposures.
Analyzing the data of the past 2 decades with periods of extreme ups and downs, a
more precise picture can be drawn on the risk-return character of the hedge fund
industry.
Keywords
References
- Alexander Ineichen, Kurt Silberstein (2008), “AIMA's Road to Hedge Funds”, The Alternative Investment Management Association Limited (AIMA), http://www.aima.org
- Doron Avramov, Robert Kosowski, Narayan Y. Naik, Melvyn Teo (2010) “Hedge funds, managerial skill, and macroeconomic variables”, Imperial College, London, Risk
- Management Laboratory, Working papers, P01, Mathieu Vaissié (2003), “A Detailed Analysis of the Construction Methods and Management Principles of Hedge Fund Indices”, EDHEC Risk and Asset Management
- Centre, http://www.edhec-risk.com/ William Fung (2002), "Benchmarks of Hedge Fund Performance: Information Content and Measurement Biases,", Financial Analyst Journal, 58 (2002), 22-34.
- HFR Regional and Strategy Classification, Center for Hedge Fund Research 2011, https://www.hedgefundresearch.com/pdf/new_strategy_classifications.pdf
- Center for Hedge Fund Rescearch, HFRI Indices/HFRI montly Indices/Historical Returns, http://www.hedgefundrescearch.com, [Accessed 5.3.2012]
Abstract
References
- Alexander Ineichen, Kurt Silberstein (2008), “AIMA's Road to Hedge Funds”, The Alternative Investment Management Association Limited (AIMA), http://www.aima.org
- Doron Avramov, Robert Kosowski, Narayan Y. Naik, Melvyn Teo (2010) “Hedge funds, managerial skill, and macroeconomic variables”, Imperial College, London, Risk
- Management Laboratory, Working papers, P01, Mathieu Vaissié (2003), “A Detailed Analysis of the Construction Methods and Management Principles of Hedge Fund Indices”, EDHEC Risk and Asset Management
- Centre, http://www.edhec-risk.com/ William Fung (2002), "Benchmarks of Hedge Fund Performance: Information Content and Measurement Biases,", Financial Analyst Journal, 58 (2002), 22-34.
- HFR Regional and Strategy Classification, Center for Hedge Fund Research 2011, https://www.hedgefundresearch.com/pdf/new_strategy_classifications.pdf
- Center for Hedge Fund Rescearch, HFRI Indices/HFRI montly Indices/Historical Returns, http://www.hedgefundrescearch.com, [Accessed 5.3.2012]
Details
| Other ID | JA47HH75GG |
|---|---|
| Authors | |
| Publication Date | December 1, 2012 |
| IZ | https://izlik.org/JA36EP34CW |
| Published in Issue | Year 2012 Volume: 4 Issue: 2 |