Hedge Funds: An Industry in Its Adolescence
Source: Federal Reserve Bank of Atlanta

The dramatic increase in the number of hedge funds and the “institutionalization” of the industry over the past decade have spurred rigorous research into hedge fund performance. This research has tended to uncover more questions than answers about the dynamic and multifaceted hedge fund industry.

This article presents a simple hedge fund business model in which fund returns are a function of three key elements—how the funds trade, where they trade, and how the positions are financed. The article also provides methods to help investors, intermediaries, and regulators identify systemic risk factors inherent in hedge fund strategies.

+ Full Document (PDF; 561 KB)
See more articles about hedge funds.

This entry was posted on Tuesday, January 2nd, 2007 at 6:46 pm and is filed under Business and economics, Investments. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.