Benefits of Hedge Funds

Abstract

The term hedge fund consists of a number of investment strategies that offer risk and return opportunities not commonly found in traditional long only stock and bond investment. In general, hedge funds are loosely regulated private pooled investment vehicles that manage client assets with trading strategies that are generally levered, often include a performance fee, and use global cash as well as global futures and options markets for the benefits of their investors. This article focuses on the academic evidence on the benefits of adding hedge funds to an investment portfolio.

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