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

Explain about money market mutual funds, Q. Explain about Money Market Mutu...

Q. Explain about Money Market Mutual Funds? Money Market Mutual Funds: Money market mutual funds (MMMFs) focus on short-term marketable securities such as TBs, CPs, CDs or call

Secondary market organise exchanges-over the counter markets, How can secon...

How can secondary market organised the exchanges and over the counter markets? Exchanges and over-the-counter (OTC) markets: Secondary markets can be organised by exchanges

What is a hedge fund, Q.What is a Hedge Fund? A Hedge Fund is a fund es...

Q.What is a Hedge Fund? A Hedge Fund is a fund established by one or else several partners with net worth of at least $1 million (although this maybe falling). It uses long as

Conversion premium , The amount by which the market price exceeds the...

The amount by which the market price exceeds the conversion value or the investment value is called as the premium.

Analysis of collaterals, If normal operating revenues are inadequate ...

If normal operating revenues are inadequate to repay the debt, liquidation of collateral may be necessary. Corporate bonds can be either secured or unsecured by c

Public finance, suppose perfect competition prevails in the market for hote...

suppose perfect competition prevails in the market for hotel rooms. the current market equilibrium price of a stanar hotel room is 100 per night

What is fv of a single present cash flow, Q. What is FV of a Single Present...

Q. What is FV of a Single Present Cash Flow? the future value of a single cash flow is defined in term of equation as follows: FV = PV (1 + r)n Where, FV = Future value PV = Pr

Define a tax create a deadweight loss, Why does a tax create a deadweight l...

Why does a tax create a deadweight loss?  What determines the size of this loss? A tax makes deadweight loss by artificially increasing price above the free market level, so de

Illustrate in brokered markets in trade intermediation, Illustrate the in b...

Illustrate the in brokered markets according to trade intermediation. In brokered markets: In brokered markets, brokers execute an active search function to match buyers and

Advanced financial management, QUESTION 1 [25 marks] Xelo Ltd, whose curren...

QUESTION 1 [25 marks] Xelo Ltd, whose current sales consist of fixed operating costs of R140 000 and variable operating costs equal to 22% of sales, has made the following two sale

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