What Is a Hedge Fund?
The average net return was 7.70 percent a year, against 8.04 percent for the index.
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1.In the study of about 8,400 hedge funds, how did the average net return compare with the S and P 500?
The average net return was 7.70 percent a year, against 8.04 percent for the index.
2.What did the same study find besides the lower average return?
Alpha is return not explained by moving with the market; averages depend on how you count.
3.Why can funds that close and drop out of the data distort a study?
The authors adjusted for such biases before reporting 7.70 percent.
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Sources (7)
- Ibbotson, Roger G.; Chen, Peng; Zhu, Kevin X.: The ABCs of Hedge Funds: Alphas, Betas, and Costs, Financial Analysts Journal 67(1), 15-25 (2011)
- eCFR, 17 CFR 230.501 (Regulation D, Definitionen: Accredited investor), Absaetze (a)(5)
- SEC, Press Release 2011-226: SEC Approves Confidential Private Fund Risk Reporting (26. October 2011)
- SEC Office of Investor Education and Advocacy, Investor Bulletin: Hedge Funds
- Federal Reserve History, Near Failure of Long-Term Capital Management (Essay, zuletzt aktualisiert 22. November 2013)
- Bernanke, Ben S.: Hedge Funds and Systemic Risk, Rede, Federal Reserve Bank of Atlanta Financial Markets Conference, 16. May 2006
- Eigene Rechnung: Gebuehrenanteil aus
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