Magazine article from our research archive:
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7 Hedge fund performance.(Portfolio Performance Evaluation)
- Article from:
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Foundations and Trends in Finance
- Article date:
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April 1, 2006
- Author:
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;
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Copyright informationCOPYRIGHT 2006 Now Publishers, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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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 ...
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