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...

Purpose – Academic research has shown that diversification today may not only include stocks and bonds but also alternative investments like hedge funds. However, practical and effective methods to identify the hedge fund styles that really enhance the risk return characteristics of a...

Purpose – The purpose of this paper is to examine the possibility of creating hedge funds “clones” using liquid exchange traded instruments. Design/methodology/approach – Authors analyze the performance of fixed weight and extended Kalman filter generated clone portfolios (EKF) for 14...

This paper provides a critique of alternative organizational structures in the hedge fund industry. Our critique is facilitated by several stylized models describing alternative industry structures. The models include: (1) An insideonly hedge fund model; (2) A straddling hedge fund model; (3) A...

Alternative Investments on Contemporary Financial Market -- Hedge Funds -- Investment Strategies of Hedge Funds -- Funds of Funds -- Managed Futures Investments -- Structured Products -- Private Equity/Venture Capital Investments -- Conclusion -- Bibliography.