Understanding hedge fund performance better
Mon Jun 9, 2014
It is all too common today for comparisons between aggregated hedge fund indices and equity indices like the S&P 500 to be made
By Jack Inglis, CEO, AIMA
It is a debate possibly as old as the hedge fund industry
itself. Investors, commentators and the media have long mulled
over how to understand hedge fund performance and compare it to
other investments. But since the financial crisis, and the
quantitative easing-fuelled boom in public equity markets that
followed it, these debates have intensified.
It is all too common today for comparisons between
aggregated hedge fund indices and equity indices like the
S&P 500 to be made. For example, a set of monthly hedge
fund index figures is often compared to the S&P 500 in that
period with the latter used as a proxy for the
'market’, with the difference between the two
interpreted as hedge funds either under-performing or
over-performing 'the market’.
This of course is not the way most institutional hedge fund
investors or funds of hedge...
ISSN: 2151-1845 / CDC10004H
Take a trial today and access
- Performance news, fund launches, regulation changes and people moves
- Profiles of fund managers, investors and distributors
- Live league tables
- Investor mandates
Start your subscription today!
- Access our news and performance data online from anywhere
- Receive weekly emails with the latest news and performance data
- Free copies of the bi-annual Global Review inc. the Billion Dollar Club
- 24/7 online support
- Dedicated account manager