Hedge Fund

Hedge Fund Performance Evaluation

Table of Contents

History of Funds…………………………………………………………………………………..1

Strategies of Hedge Fund 3

Long/Short Strategies 3

Event Driven Strategies 4

Tactical Trading Strategies 4

Relative Value Strategy 4

Distressed……………………………………………………………………………………….5

Emerging Markets…………………………………………………………………………….5

Risk Associated With Hedge Funds 6

Investor Demographics 7

Regulatory restrictions vis-à-vis Mutual Funds 8

Terminologies of Hedge Fund Industry 9

References 12

Hedge Fund Performance Evaluation

History of funds

There are many definitions of hedge fund, and none of it is universally accepted. It is very difficult to describe hedge fund when we are referring to a number of investment vehicles with heterogeneous and diverse characteristics. The definition of hedge fund of a private company is free to operate in a variety of markets and investments and strategies used with variable exposure to long and short positions and degrees of leverage. The highlight of the definitions can be made from this type of investment is first, that a hedge fund is an investment vehicle for a collective investment scheme although it may take different legal forms company, investment fund or other. Furthermore, short positions can also be taken through derivatives, such as futures selling a particular title. The problem faced by the hedge fund, is that not all assets are traded futures or other derivatives with which to take short positions, so they often need the loan of securities (Asness, Robert, John, 2001). The first alternative management fund, the Jones hedge fund, was created in 1949 by a doctorate in sociology and financial journalist Alfred Winslow Jones. The Jones Hedge Fund gave its name to what is now known as a hedge fund. The first hedge fund was taking long and short positions in stocks and bonds, to increase yields and reduce the net exposure to the...