Risk-Adjusted Performance of Mutual Funds
A summary of the different styles of hedge funds and
the proportion of the market they occupy is shown in Table
4, based on Hedge Fund Industry Research data. An
indication of the broad activity involved in the style is
shown on the right hand side. Most of these strategies are
long-short in nature: all of the equity hedge (e.g. long a
stock and long a put to hedge its fall); most of event driven
(e.g. buy the target M&A company and sell the buyer); all of
relative value arbitrage (e.g. buy the London listing and sell
the...
