AIMA, the global hedge fund industry association, has
published a detailed statistical rebuttal of 'The Hedge Fund
Mirage' - a book written by former JP Morgan man Simon Lack
that has attracted widespread coverage on account of its highly
critical assessment of the industry's performance and which
AIMA describes as "a polemic".
The paper, entitled "Methodological, mathematical and
factual errors in 'The Hedge Fund Mirage'", was written in
conjunction with AIMA's Research Committee, which features
leading academics and analysts.
"Many of us in the industry looked at the arguments in the
book with initial interest, and then growing skepticism," said
AIMA CEO Andrew Baker. "Many of the most sensational claims
appeared not to be backed up by any figures. Where there were
figures, the methodology was flawed. We noticed that no-one
praising the book appeared to have actually checked the numbers
behind it. We began to wonder if 'The...