Click to login and read the full article.
Don’t have access? Click here to request a demo
Alternatively, Call a member of the team to discuss membership options
US and Overseas: +1 646-931-9045
UK: 0207 139 1600
Abstract
Investors today are faced with a vast array of investment options, including hedge funds of many types. Efforts to evaluate performance relative to benchmarks, such as index composites, cannot encompass the full feature set of specific hedge funds and fall short in providing an accurate picture of risks and returns in relation to an investor’s total portfolio.
In this report, Peter Mladina , a Director of Portfolio Research at Northern Trust , explores the use of an Applied Portfolio Factor Model (PFM) to drill down into hedge fund performance. His work takes opportunity costs into consideration and highlights the importance of separating alpha from beta, assessing the risk premiums that are driving returns and evaluating the impacts on portfolio diversification and the manager selection process.
- The content is made available for your general information and use and is not intended for trading or other specific investment advice purposes or to address your particular requirements. We do not represent or endorse the accuracy or reliability of any advice, opinion, statement, or other information provided any user of this publication. Reliance upon any opinion, advice, statement, or other information shall also be at your own risk. Independent advice should be obtained before making any such decision. Any arrangements made between you and any third party named in this publication are at your sole risk.
Don’t have access? Click here to request a demo
Alternatively, Call a member of the team to discuss membership options
US and Overseas: +1 646-931-9045
UK: 0207 139 1600