Purpose – The purpose of this paper is to propose that simple measures of linear association are unable to capture accurately the dependence between the survival of hedge funds and funds of funds, respectively. The paper then aims to advocate the use of copulas to model the joint survival of...

Explains the popularity of hedge funds as a convenient way to park pension fund and endowment fund money onshore or offshore in times of volatile stock and bond markets; as a result, hedge fund assets have risen to almost $650 billion. Relates this to why they are vulnerable to scams: they are...