Build your professional network on facebook via our app Go to app
 
 
Posted in Community :

Hedge Funds

 

CAN HEDGE-FUND RETURNS BE REPLICATED?

Created by : Vikrant Panwar, Portfolio Manager, IL&FS Venture Corporation  | 09 30 2008 06:38:35 +0000
Industry : Hedge Funds/VCs/Private EquityFunctional Area : Equities(Markets)
Keywords : Hedge-Fund Fund Returns Hedge Replicate Replicated
Activity:  226 views;  last activity : 07 06 2010 20:18:09 +0000
In contrast to traditional investments such as stocks and bonds, hedge-fund returns have more complex risk exposures that yield additional and complementary sources of risk premia. This raises the possibility of creating passive replicating portfolios or “clones” using liquid exchange-traded instruments that provide similar risk exposures at lower cost and with greater transparency. So can it be replicated?
  
Share
 
 
  Rate : 
 
 
Yes Vs No
1
 
 
 
 
1
1
1
Support   Support
 
0
0
A portion of every hedge fund’s expected return is risk premia compensation to investors for bearing certain risks. One of the most important benefits of hedge-fund investments is the non-traditional types of risks they encompass, such as tail risk, liquidity risk, and credit risk. Most investors would do well to take on small amounts of such risks if they are not already doing so because these factors usually yield attractive risk premia, and many of these risks are not highly correlated with those of traditional long-only investments. So replication is a good option
By Vikrant Panwar, Portfolio Manager, IL&FS Venture Corporation  | 09 30 2008 06:38:35 +0000
0
0
Given the present market situation it will be risky to invest in hedge funds forget replicating it.

By Veena Gupta, Analyst, Blackstone Group  | 09 30 2008 06:39:45 +0000
Argue for "Yes"
Argue for "No"
 Found the debate " CAN HEDGE-FUND RETURNS BE REPLICATED?"  interesting ?  Suggest to your connections and communities  
Leading recruitment firm
Leading recruitment firm
Viewers also viewed
Walmart being America's largest discount store operate in various part of the world, successful...
 
43 referals 20 arguments, 2118 views
Which is better ULIP or Mutual Funds?
 
25 referals 27 arguments, 2873 views
Easy vs Tough
 
4 referals 5 arguments, 242 views
more...  
Recent Knowledge (1)
These days as I switch on the tv or radio or look at a hoarding I do feel that power of ads I...
 
3004 referals 23 arguments, 492 views
more...  
Sponsored Jobs
More From Author
This is the third time when this bank has cut rates since the last fiscal. I do not know how this further cut is going to help them to increse their business.
At times, it seems not an attractive alternative to go for capital for the funding of business. It cannot be an alternative to venture capital all the time. May be if your business is not too small to go for angel  investors, then the match will never...
Another benefit from raising angel capital which I have observed is that there are no outstanding payment rates such as the ones that bank loans and credit cards require. Many entrepreneurs enjoy this element of angel investors, concentrating their...
more...  
  • Popular Knowledge
  •  
  •  
  • Popular Jobs
  •