Abstract
The global hedge fund industry has historically been known for its lack of transparency. Some call hedge funds a shadow investment—meaning that, by and large, the assets held and managed by the funds are out of the public view. Accordingly, this makes hedge funds very attractive to high-net-worth individuals who generally do not like to disclose their investments and the size of their wealth to the broader public. After reading this chapter and coming to appreciate the characteristics of hedge funds, you should understand why this is the case.
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Notes
- 1.
Hedge Fund Research, Inc. “HFR Global Hedge Fund Industry Report—Second Quarter 2013.” www.hedgefundresearch.com .
- 2.
“Form PF: Frequently Asked Questions.” www.sec.gov/divisions/investment/pfrd/pfrdfaq.shtml.
- 3.
Glossary of Terms in Form PF (Reporting Form for Investment Advisers to Private Funds). www.sec.gov/about/forms/formpf.pdf .
- 4.
Citi Prime Finance. “Hedge Fund Industry Snapshot.” September 2013 (based on August 2013 data); http://citi.com/icg/global_markets/prime_finance/docs/hf_monthly.pdf
- 5.
Jacob Wolinsky “Hedge Fund Alpha is Negative” July 11, 2013 www.valuewalk.com/2013/07/hedge-fund-alpha-negative/
- 6.
Elizabeth MacBride “Understanding the Recent Rise in Correlations” Forbes 3/09/2011. www.forbes.com/sites/riabiz/2011/03/23/understanding-the-recent-rise-in-correlations-and-turning-it-to-your-advantage/
- 7.
A publicly traded limited partnership is referred to as a master limited partnership (MLP) and is usually invested in real-estate properties or oil and gas interests. MLPs are discussed in Chapter 12.
- 8.
SEC Office of Investor Education and Advocacy Investor Bulletin: Hedge Funds 10/03/2012. http://sec.gov/investor/alerts
- 9.
Morningstar Rating Methodology for Hedge Funds. December 2011. https://corporate.morningstar.com/us/documents/MethodologyDocuments/MethodologyPapers/HF_RatingMethodology.pdf.
- 10.
Bernstein Global Wealth Management and AllianceBernstein Global Wealth Management, “Demystifying Hedge Funds: Taking a Rigorous Research Approach.” October 2012. https://www.alliancebernstein.com/abcom/Perspectives_Web/Current/PrivateClient/DemystifyingHedgeFunds.pdf?uuid=67914af8-170a-11e2-91e8-d2f83f806d28
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© 2013 Keith R. Fevurly
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Fevurly, K.R. (2013). Hedge Funds. In: The Handbook of Professionally Managed Assets. Apress, Berkeley, CA. https://doi.org/10.1007/978-1-4302-6020-2_9
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DOI: https://doi.org/10.1007/978-1-4302-6020-2_9
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