Publication Type
Working Paper
Version
publishedVersion
Publication Date
10-2004
Abstract
Hedge funds are collective investment vehicles that are often established with a special legal status that allows their investment managers a free hand to use derivatives, short sell, and exploit leverage to raise returns and cushion risk. We review various issues relating to the investment in hedge funds, which have become popular with high net-worth individuals and institutional investors, as well as discuss their empirical risk and return profiles. The concerns regarding the empirical measurements are highlighted, and meaningful analytical methods are proposed to provide greater risk transparency in performance reporting. We also discuss the development of the hedge fund industry in Asia.
Keywords
Hedge funds, fund management, risk, returns, performance measurement
Discipline
Corporate Finance | Finance and Financial Management
Research Areas
Finance
First Page
1
Last Page
33
Identifier
10.2139/ssrn.637461
Publisher
SSRN
Citation
KOH, Francis; KOH, Winston T. H.; LEE, David K. C.; and PHOON, Kok Fai.
Investing in hedge funds: Risks, returns and performance measurement. (2004). 1-33.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/5163
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.2139/ssrn.637461