Hedge fund indices, Financial Management

Assignment Help:

Hedge Fund Indices

Substantial increase in the use of Hedge Funds in recent times has created demand for appropriate indices that can offer a good tool to assess and benchmark the Fund performance. This can be seen from where in returns of various hedge fund strategies from 2003-2006 are shown. Currently, popular Hedge Fund indices include Hedge Fund Research (HFR) and EACM (Evaluation Associates Capital Management). Generally, Hedge Fund indices are constructed to show a Hedge Fund's performance by the investment style. Some industry observers also believe that the return generated by Fund of Hedge Funds is often taken as the overall industry performance.

Hedge Funds are consistent performers and are posting double digit returns for the last ten years. Between 1994 and 2005, US shares produced an average annual return of 10.6 percent, just outpaced by hedge funds, which according to Credit Suisse/Tremont, produced an 11 percent average annual return. Therefore, an investor can add significant value to his portfolio by including a Hedge Fund through the systematic implementation of active style allocation decisions which can add alpha to his overall portfolio returns (above average return from particular benchmark).


Related Discussions:- Hedge fund indices

Cash books, Cash Books (Cash Payments and Receipts Journals) Cash books...

Cash Books (Cash Payments and Receipts Journals) Cash books are the names given to the Cash Receipts Journal and the Cash Payments Journal. They are used to record the flow of

Working capital, 5 Define risk. Examine the need for assessing the risks in...

5 Define risk. Examine the need for assessing the risks in a project.

What are the merits of budgets?, Question 1 Describe the process involved ...

Question 1 Describe the process involved in accounting. What are the objectives of accounting? Question 2 Briefly explain the role of management accounting. Also expalin the

Cost of preference capital, Cost of Preference capital (K ) The fixed ...

Cost of Preference capital (K ) The fixed rate of dividend payable to the Preference share holders is the cost of Preference capital.  Exactly, the cost of Preference capital

Put option, Put Option This is a right which is granted in exchange for...

Put Option This is a right which is granted in exchange for an agreed-upon sum to sell property. Options are mostly used frequently in securities transactions it also used stoc

Explain the factors which company should apply, Explain the factors which c...

Explain the factors which company should apply Companies to be the very best must Establish what competition is doing Set the very best standards to exceed Es

Dual-indexed floaters, In dual indexed floaters the coupon rate is a ...

In dual indexed floaters the coupon rate is a fixed rate plus the difference between two reference rates. Purchasers of these securities typically make an assumpt

Problem in computation of retained earnings, Q. Problem in computation of r...

Q. Problem in computation of retained earnings ? Problem in computation of retained earnings: it is sometimes argued that retained earning do not involve any costs. But in the

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd