This paper provides an overview of the hedge fund industry and explains why hedge funds are gaining in popularity among institutional investors. I review the different styles used by hedge fund managers and analyze how they impact returns. Furthermore, I will address how the lack of transparency...

Asset allocation advisers usually use the mean-variance framework to show the benefits of investing in hedge funds. The authors prove that this is not optimal when the assets are not normally distributed and develop a method based on a modified Value-at-Risk for non-normally distributed assets....

While index-based investing is a new development in the hedge fund industry, a variety of new products have started to develop, such as principal-protected notes, exchange-traded certificates, and swaps. Investors can now have index-based investments structured to fit their needs. While index...

Hedge funds have become the darling of investors due to their presumed capacity to make money under all market conditions. Some are certainly worth investing in, and can augment a portfolio in very attractive ways. At the same time, they carry not only more but quite different risks than do...

Alternative investments and hedge funds in particular are now an integral part of the asset allocation process of Swiss asset managers and institutional investors. The existing legal and regulatory frameworks, as well as the practice of the Swiss supervisory authority, have allowed that...

This article provides the key findings of Edhec European Alternative Multi-management Practices Survey. It provides a detailed summary of the results of the survey of the 61 multimanagers carried out, as well as details of the research performed both by Edhec and numerous other professional and...

In the past decade significant progress has been made in achieving a single European market for investment funds. The ratio of cross-border fund flows has reached an estimated level of more than 20%, and in some European countries the number of registered non-domestic investment funds exceeds...

Over the last half decade, asset flows into hedge funds have surged, the number of funds has expanded exponentially, and new products have emerged which allow investors to obtain hedge fund exposure via structured transactions. To many, this is due to a paradigm shift in investment management...

This paper looks at the future of hedge funds, the challenges they face, and how they can remain successful going forward.

This paper looks at the future of hedge funds, the challenges they face, and how they can remain successful going forward.