Why Hedge Funds Make Sense
- Topics:
- Commercial Lending
- Source:
- Morgan Stanley Dean Witter & Co.
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Overview: The hedge fund industry has experienced enormous growth in the last decade, growing by some estimates from as few as 300 funds in 1990 to more than 3000 today. They have become highly visible and are thought to command up to $400 billion in capital before leverage. This article analyzes the performance and risk characteristics of hedge funds. It evaluate the reasons why hedge funds have produced high levels of risk-adjusted return and alpha, and show how portfolios of hedge funds can enhance strategic asset allocation for both pension funds and endowments. It concludes that hedge funds will increasingly challenge conventional investment management.
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Format: PDF | Size: 820KB | Date: Nov 2000 | Pages: 18



