Asset allocation advisers usually use the mean-variance framework to show the benefits of investing in hedge funds. We prove that this is not optimal and develop a method based on a modified Value-at-Risk model for non-normally distributed assets. We take the example of a Swiss pension fund...

1. Introduction to Alternative Investment Operations -- 2. Trade Operations: Execution, Settlement, and Reconciliation -- 3. Cash Management, Oversight, and Movement -- 4. Compliance Operations and Governance Considerations -- 5. The Role of Service Providers in Alternative Investment Operations...

Recent studies have documented that institutional investors trade contrary to the predictions of the book-to market anomaly. We examine whether a prominent sub-group of institutional investors, namely hedge funds, differ from other institutions in terms of their trading behavior with respect to...

Our paper analyzes the geographical preferences of hedge fund investors and the implication of these preferences for hedge fund performance. We find that funds of hedge funds overweigh their investments in hedge funds located in the same geographical areas and that funds with a stronger local...

This paper examines the funding liquidity faced by hedge funds and the resulting implication for stocks' excess return co-movement. We find that hedge fund ownership tends to induce a higher stocks' return co-movement with each other, compared to other institutional investors like mutual funds...

The Assets under Management of Hedge Funds have increased substantially, according to estimates from HFR from $ 237 Billion in 2000 to $ 2 940 Billion in 2015. At the same time hedge fund performance declined from over 10% per annum before 2000 to below 6% in the new millennium. According to the...

This Article attempts to define hedge funds and to distinguish them from a variety of similar investment funds. After reviewing the hedge fund definition in the U.S. and the EU, this Article argues that the current regulatory framework, which defines hedge funds by reference to what they are not...