![]() ![]() AQR and Renaissance are most notable for their data-driven investment strategy. Some can be so-called quants: funds that use complex mathematical analysis in making buy and sell decisions. Hedge funds can specialize in different approaches and strategies. ![]() Renaissance Technologies, founded by James Simons.AQR Capital Management, founded by Clifford Asness.Bridgewater Associates, founded by Ray Dalio.Jones also used borrowed money (leverage) to try to boost the fund’s returns and established the now-common practice in which managers receive 20% of the investment gains above a minimum threshold.Īmong the most prominent hedge funds in the last few decades are: “The idea behind it was: If you are clever in how you position your portfolio with your main assets and your hedges, you should have a portfolio that makes money whether the market goes up or down,” Ning explains. This became known as the classic long-short hedging model. Jones, who began with $100,000 and combined long-term stock investments with short sales to offset, or hedge, some of the risk of the long-term holdings. The first hedge fund was started in 1949 by Alfred W. “They’re basically ways for very wealthy people and pools of capital to get wealthier,’’ says Titan analyst Vincent Ning. The pool is managed by a financial professional who invests the money in a variety of securities and financial contracts. It summarizes the basic properties of hedge fund returns, discusses why traditional performance measures may be misleading when analyzing hedge fund performance, and highlights important issues such as serial correlation, return smoothing, and illiquidity."-Markus K.A hedge fund is a private pool of money collected from an assortment of wealthy individuals and institutions such as trusts, college endowments, and pension funds. "This book provides a useful and very timely overview of key aspects of the hedge fund industry. He examines the properties of returns and illiquidity in great detail and introduces an innovative concept of mean-variance-liquidity optimization, something that no other book on hedge funds has addressed."-Narayan Y. Focusing on hedge fund returns and trading strategies, risk characteristics, and potential for illiquidity, Lo brings to bear his always fresh and insightful thinking."-Richard Bookstaber, author of A Demon of Our Own Design: Markets, Hedge Funds, and the Perils of Financial Innovation "Andrew Lo's Hedge Funds is likely to be the high-water mark in the analysis of hedge funds for years to come. As one of the leading researchers in the field, Lo sets the standard by establishing key concepts for the industry with this book."-Marcel Möllenbeck, Financial Markets and Portfolio Management "For scholars already familiar with the concepts of modern portfolio theory, the book is a good start in a quest to expand their knowledge of hedge funds strategies. "Finally a serious book on hedge funds based on real data, written by a leading financial economist."-Tyler Cowen, Marginal Revolution "Anyone who is considering investing in hedge funds, or is involved in regulating the financial-services industry, should give it a go."- The Economist Professor Lo gives a masterful illustration of the problems in gauging hedge fund performance with his famous fantasy fund Capital Decimation Partners."-Steven Bell, The Business Economist The book is the authoritative distillation into an accessible form of a huge amount of academic research and practical experience. ![]() "Andrew Lo is a major figure in finance so his new book on the fast-moving world of hedge funds ought to be in the 'must read' category. In a new chapter, he looks at how the strategies for and regulation of hedge funds have changed in the aftermath of the financial crisis. In Hedge Funds, Andrew Lo - one of the world’s most respected financial economists - addresses the pressing need for a systematic framework for managing hedge fund investments.Īrguing that hedge funds have very different risk and return characteristics than traditional investments, Lo constructs new tools for analyzing their dynamics, including measures of illiquidity exposure and performance smoothing, linear and nonlinear risk models that capture alternative betas, econometric models of hedge fund failure rates, and integrated investment processes for alternative investments. Because hedge funds are largely unregulated and shrouded in secrecy, they have developed a mystique and allure that can beguile even the most experienced investor. Originally intended for the wealthy, these private investments have now attracted a much broader following that includes pension funds and retail investors. The hedge fund industry has grown dramatically over the last two decades, with more than eight thousand funds now controlling close to two trillion dollars. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |