Article: New Hedge Fund Classifications Would Promote Transparency and Boost Investor Confidence, According to Bank of New York Mellon Study.

Report spotlights common myths regarding hedge fund volatility, alpha- generation and risk

NEW YORK, Oct. 22 /PRNewswire-FirstCall/ -- The convergence between hedge fund and equity market returns, combined with inconsistencies in hedge fund classification, could cause widespread confusion on how such funds should be used to diversify investment portfolios and result in unrealistic return expectations for investors, according to a study conducted by The Bank of New York Mellon and independent research firm Oxford Metrica.

The report, entitled Rethinking performance in the hedge fund industry, recommends that hedge funds be classified using cluster ...

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