Abstract

The hedge fund industry represents a significant and viable alternative for mainstream investment business clientele, as well as a growing number of sophisticated high net worth individuals. The hedge fund raison d’etre has been relative independence of other (more traditional) asset classes and competitive return/risk characteristics. Although the global hedge fund community is still reeling from the turmoil of 2007-2009, it is not premature for a preliminary assessment of hedge funds’ performance during and post the recent global financial crisis. Early indications offer a mixed perspective. On the one hand, the hedge fund community as a whole showed considerable resilience to the global financial turmoil, on the other – its risk adjusted value creation success has been rather mediocre.

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