Economics, Econometrics and Finance
4 years ago

Simulation framework shows hedge fund investments improve investor performance significantly

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Paper Summary

The article introduces a simulation framework to evaluate hedge fund investments for institutional investors. By analyzing a subset of hedge funds in the managed futures space, the study shows that investing in managed futures can improve performance. Equal risk approaches are found to be better than minimum risk portfolios in enhancing an investor's performance. The framework offers a flexible way for investors to assess hedge fund investments based on their preferences and constraints.