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

What difference does it make ordinary annuities, If you are doing PVA and F...

If you are doing PVA and FVA problems, what difference does it make if the annuities are "ordinary annuities" or "annuities due"? In PVA or a FVA of annuity due trouble, annuit

Dd-aa model, a Suppose you are the TA of Econ 3602 and one student does not...

a Suppose you are the TA of Econ 3602 and one student does not know how to derive the DD schedule. Show this student how to derive the DD schedule. Support your answer with equatio

Define the meaning of rate of return on investment, Define the meaning of r...

Define the meaning of rate of return on investment An investment project which provides positive NPV when its cash flows are discounted by cost of capital makes a net contribut

Active management in practice, Constant Duration To ...

Constant Duration To improve a buy and hold strategy a constant average duration is imposed for the managed portfolio during the full interest rate cy

What are the reasons why organisations grow, What are the Reasons why organ...

What are the Reasons why organisations grow Required to provide higher financial returns to investors e.g. increases the wealth of shareholders Possible to achieve econ

Explain compound value concept, Q. Explain Compound Value Concept? The ...

Q. Explain Compound Value Concept? The Compound Value Concept is used to find out the FV of present money. It is the same as the concept of compound interest, wherein the inter

What interest rate is required to yield a balance, Q.  A sum of $2,500 is d...

Q.  A sum of $2,500 is deposited in a bank account that pays 5.25% interest compounded weekly. How long will it take for the deposit to double?  How long will it take you to accrue

Types of rating - shadow rating, The issuer will not have to disclose...

The issuer will not have to disclose the rating to the public. The firm can, either independently or with the help of its investment banker, assess its shadow

Government bonds, Government securities are the most important and un...

Government securities are the most important and unique financial instruments in the financial markets of any economy. Government of India Securities (GOI Sec) in

Market condition affecting cost of capital, Q. Market condition Affecting c...

Q. Market condition Affecting cost of capital? Market condition: if an investor is purchasing a security where the risk of the investment in significant the opportunity for add

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