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

Interpretations of activity ratio''s, Activity Ratio's   RT:        ...

Activity Ratio's   RT:           The Receivables Turnover ratio is the ratio between sales to accounts receivables. This says exactly how fast a company can collect on the s

Variance analysis, a)   Write short note - 1) P V Ratio 2) Margi...

a)   Write short note - 1) P V Ratio 2) Margin of Safety   3) Material Variances 4) Absorption Costing b)  Describe the meaning of the term 'variance an

Prepare a report for the managing director, The Managing Director of your f...

The Managing Director of your firm is thinking aloud about an appropriate gearing level for the company: "The consultants I spoke to yesterday explained that some academic th

Attempt to pay cash dividends to common stockholders, Are there any legal f...

Are there any legal factors that could restrict a corporation in its attempt to pay cash dividends to common stockholders?  Explain. A firm may be lawfully restricted as to the

Consequence of the cash operating cycle, Q. Consequence of the cash operati...

Q. Consequence of the cash operating cycle? The cash operating cycle is the length of time among paying trade payables and receiving cash from receivables. It is able to be cal

Define the types of shareholder, Tactics can be used by company to protect...

Tactics can be used by company to protect itself. Before the bid Types of Shareholder Having the right shareholders on board who can be

Why too little debt is as undesirable as is too much debt, If an optimal ca...

If an optimal capital structure exists, what are the reasons why too little debt is as undesirable as is too much debt? Too little debt may be as unwanted as too much debt for

Define stress testing and leverage, Lehman Brothers Holdings was a global f...

Lehman Brothers Holdings was a global financial services firm which, until declaring bankruptcy in 2008, participated in business in investment banking, equity and fixedincome sale

Explain the compound interest, What is compound interest? Compare compound ...

What is compound interest? Compare compound interest to discounting. Compound interest takes place while interest is earned on interest and on the original principal of an invest

Operating cycle, disscus the applicability of operating cycle in vegetable ...

disscus the applicability of operating cycle in vegetable in uganda

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