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10 Cards in this Set
- Front
- Back
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Absolute return strats |
HF strat that that seeks to minimize market risk and total risk |
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Backfill bias |
Backfilled data in database only includes managers with good performance |
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Fee bias |
When index returns overstate what a new investor can obtain in the HF marketplace b/c the fees used to estimate index returns are lowerthan the typical fees that a new investor would pay |
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Hedge fund program |
The process and procedures for the construction, monitoring and maintenance of a portfolio of HFs |
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Opportunistic |
The strat is driven by the identificiation of potentially aggressive exposure to investments that appear to offer superior returns, typically on a temp basis |
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Relative return |
When an investments returns are significantly driven by braod market returns and should be compared relative to broad market returns |
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Short vol exposures |
Any risk exposure that causes losses when asset return vols increase |
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Style drift |
Consistent movement through time in teh primary style or strat being implemented by teh fund |
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Synthetic Hedge Funds |
Funds that attempt to mimic HF returns using listed securities and mathmatical models. These funds replicate HF returns at lower cost to investors via lower fees |
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Khandani and Lo |
HF industry has facilited economic growth and generated social benefits by providing liquidity, engaging in price discovery, transfer of risk |
