Prior academic research on hedge funds focuses predominately on fund strategies in relation to market timing, stock picking, and performance persistence, among others. However, the hedge fund industry lacks a universal classification scheme for strategies, leading to subjective fund...

We analyse and contrast the performance of discretionary and systematic hedge funds. Systematic funds use strategies that are rules-based, with little or no daily intervention by humans. In our experience, some large allocators shy away from systematic hedge funds altogether. A possible...