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Who invests in hedge funds? 4 Nov 2010 | 02:41 pm
The main source of assets under management for hedge funds are: Wealthy private individuals Institutional investors Financial institutions Funds of funds
Benchmark related statistics used to evaluate hedge funds 13 Oct 2010 | 02:31 am
Capture ratio is the average of the captured performance (difference between fund’s returns and benchmark’s returns) Up capture indicator is fund’s average return divided by benchmark average return,...
What is the Difference Between a Fund of Funds and a Multi-Strategy Fund? 4 Oct 2010 | 03:40 pm
A fund of funds allocates funds to a variety of hedge fund managers to gain diversification. Multi-strategy funds typically implement a dynamic strategy allocation as market conditions change.
What is Drawdown 13 Sep 2010 | 02:25 am
The decline in net asset value from the highest historical point. Often expressed as a percentage loss. Individual drawdown is any losing period during an investment record. Maximum drawdown is the ...
The Relative Value Arbitrage Style 4 Sep 2010 | 03:35 pm
Relative value arbitrage style hedge funds attempt to capitalize on relative pricing discrepancies between related instruments in anticipation of the prices converging over time Arbitrage is a two si...
What is the Bera-Jarque statistic? 13 Aug 2010 | 02:15 am
The Bera-Jarque statistic combines skewness and kurtosis into a single measurement, and determines whether kurtosis is unusually different from its expected value. It is calculated as T/6[skewness^2 ...
The Event Driven Style 4 Aug 2010 | 03:31 pm
Event-driven style hedge funds typically focus on distressed securities or risk arbitrage. The distressed securities style focuses on debt and equity of companies experiencing or expecting to experie...
What is kurtosis? 13 Jul 2010 | 02:08 am
Kurtosis is the fourth central movement of a distribution. The first three movements are mean, standard deviation, and skewness. It measures the distribution’s peakedness and the thickness of its tail...
The Equity Long-Short Style 4 Jul 2010 | 03:28 pm
Hedge funds using the equity long/short style invest in equities, combining long and short investments to reduce but not eliminate market exposure. Major sub-categories of the style include: Global ...
What is Skewness 13 Jun 2010 | 01:59 am
Skewness is the third central movement of a distribution. The first two movements are the mean and the standard deviation. It measures the symmetry of a return distribution around its mean. Zero skew...
