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,...

Recently, a body of academic literature has focused on the area of stable distributions and their application potential for improving our understanding of the risk of hedge funds. At the same time, research has sprung up that applies standard Bayesian methods to hedge fund evaluation. Little or...