|
Description
Hedge funds have been in business for over 60 years. However, the recent growth in hedge fund assets and the significant attention devoted to hedge funds in the popular press has increased the interest in hedge fund performance. Like mutual funds, hedge funds are open-ended investment companies that pool dollars from a group of investors. Unlike mutual funds, hedge funds are exempt from the Investment Company Act. The growth in the industry and the differences from mutual funds have created a challenging new avenue for performance evaluation.
From a research standpoint, hedge fund performance poses several interesting features. For one, the compensation of a typical hedge fund manager includes a significant performance fee. That is, a share of the fund's returns, often after the fund performance exceeds a "high water mark." These compensation contracts are thought to attract the most highly skilled managers. Therefore, the hedge fund industry should provide a fertile laboratory for detecting superior investment performance. Also, the secretive nature of the industry makes historical data limited and, when available, subject... |
More articles from Foundations and Trends in Finance
8 Recent empirical evidence.(Portfolio Performance Evaluation), April 01, 2006
9 A summary: the evidence on managed portfolio performance and market ..., April 01, 2006
10 Conclusions.(Portfolio Performance Evaluation)(Brief article), April 01, 2006
Acknowledgments.(Portfolio Performance Evaluation), April 01, 2006
References.(Portfolio Performance Evaluation), April 01, 2006
Looking for additional articles?
Click here
to search our database of over 3 million articles.
|
%20%20&position=1)