In contrast with high-net-worth individuals, who focus on absolute returns, the more recent investors in the hedge fund universe - especially institutional investors - require risk-adjusted performance measures.
Unfortunately, there are limitations to traditional performance measures, such as the Sharpe ratio and multi-factor models. Therefore, hedge fund indices have received increasing acceptance.
However, hedge fund indices suffer from numerous theoretical shortcomings and practical challen
The week on Risk.net, March 10-16 2018Receive this by email