The interaction of arbitrageur's and noise trading from a Behavioural orthodox approach is a new area of research. Noise traders are misled and they are making decisions not on data and forecasts, but based on their personal opinion. Their wrong estimate creates discount persistence throughout...

Mathematical explanation of noise trading from a behavioural Orthodox approach is a complete new subject of research. My model tries to calibrate noise in terms of systematic errors and biases formed by noise traders, as they ignore the religious factors that affect their thoughts and therefore...

Discount persistence explanation from a behavioural point of view is a new area of research for both academics and practitioners. The interactions of both arbitrageurs and noise traders during the life of the fund will enable us to detect the effect of discount persistence based on an investor...

In this article, we are testing the performance of offshore hedge funds for the period 1998 to 2003. Offshore hedge funds are located for example in Cayman Islands, British Virgin Islands and Bermuda. Offshore hedge funds offer flexibility in terms that they invest in international equities,...

Commodity trading advisers, (CTA), or managed futures managers' trade in the commodity market. The hedge funds invest in commodity futures, currencies, bonds and shares. Hedge funds use managed futures in terms of indices, treasuries, fixed–income securities and commodities such as gold,...

In this paper, we studied the monthly returns of hedge funds over the period 1998 to 2003 and found that there are styles of management that affect the performance. We found that differences in investment style contribute about 30 per cent of the variability in hedge funds performance. This...

In this paper, we are using Jensen's alpha, Sharpe ratio and multi-factor models to test the performance of hedge funds for the period 1998 to 2003. Hedge fund returns exhibit a high degree of non-linearity and kurtosis. Our results suggest that for the examined period hedge funds provide...

We are investigating whether hedge fund indexing provide sufficient asset diversification for the private investors and decreased volatility. It is another way to gain access in the hedge fund industry. The traditional way was to invest in different hedge fund categories. Investing directly on...

Funds of hedge funds invest solely in other hedge funds. The hedge fund manager selects funds based on a specific investment strategy or a combination of different investment strategies to achieve a better return. The benefit of combining different investment strategies is to achieve...

We are investigating whether conditioning information affect the performance of UK investment trusts to detect superior performance. Our results suggest that simple unconditional constant models that are used are not valid and are misspecified and biased to measure and evaluate the performance...