Kevin R. Mirabile: Hedge Fund Investing
- 214 Downloads
Hedge funds are an important investment vehicle for institutional investors and high-net-worth individuals: assets under management of hedge funds and funds of hedge funds have increased from about 500 billion USD in 2000 to 2,700 billion USD by the end of 2013. Hedge funds are attractive to investors for three main reasons: (a) they provide a historically attractive risk-return tradeoff (i.e., they deliver high average returns for relatively low volatility), (b) they exhibit low correlation with traditional asset classes and provide portfolio diversification benefits, and (c) they aim to achieve positive returns independent from the current state of the economy (i.e., they target absolute instead of relative returns). Nevertheless, there is still considerable confusion over and misconceptions about hedge funds: What are they? How do they operate? What trading strategies do they use? How should their performance be measured?
In his book Hedge Fund Investing, Kevin R. Mirabile seeks to...