Financial Markets and Portfolio Management

, Volume 31, Issue 1, pp 113–115 | Cite as

Turan G. Bali, Yigit Atilgan, and K. Ozgur Demirtas: Investing in hedge funds: a guide to measuring risk and return characteristics

Elsevier Inc., 2013, 177 pp, approx. EUR 35, ISBN 978-0-12-404731-0
  • Florian WeigertEmail author
Book Review

Over the past 20 years hedge funds have become an attractive investment vehicle for institutional investors and high-net-worth individuals for three main reasons: (1) they provide a historically attractive risk–return trade-off (i.e., they deliver high average returns for relatively low volatility), (2) they exhibit low correlation with traditional asset classes and hence provide portfolio diversification benefits, and (3) they aim to achieve positive returns independent of the current state of the economy (i.e., they target absolute instead of relative returns). Not surprisingly, assets under management of hedge funds and funds of hedge funds increased from about USD 500 billion in 2000 to more than USD 3000 billion by the end of 2015. Nevertheless, public opinion on these investment vehicles is frequently negatively biased and there is still considerable confusion over and misconceptions about hedge funds: What are they doing? How do they operate? What trading strategies do they...

Copyright information

© Swiss Society for Financial Market Research 2017

Authors and Affiliations

  1. 1.School of FinanceUniversity of St. GallenSt. GallenSwitzerland

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