Evaluating Hedge Fund Performance - Hardcover

Divided into three comprehensive parts, Evaluating Hedge Fund Performance takes the standard hedge fund book to a new level by detailing how to manage the risks associated with hedge funds and offering the best methods to evaluate and monitor them.

As a primer on hedge funds, Part One of this book discusses the misconceptions about long-term investing and diversification in asset allocation and how hedge funds can fill the void left open by traditional long-only investments—so you can achieve long-term investment objectives with lower volatility. You'll also receive a comprehensive review of the hedge fund industry, its investors, and how main hedge fund strategies have performed in past market conditions.

Part Two of the book is devoted entirely to issues concerning manager research and evaluation, and portfolio construction. Here, you'll gain a better understanding of the risk/return characteristics of hedge fund strategies in order to assess their potential role and added value in diversified portfolios of hedge funds. You'll also discover how to properly analyze, evaluate, and select individual hedge funds as well as assemble them in ways that will achieve your targeted risks and returns.

Rounding out the discussion of hedge funds, Part Three of this important guide will show you how to periodically review, evaluate, and assess the performance of funds in your portfolio, including their rates of return, volatility of these returns, and how these investment results were produced. The purpose of this part is to make sure your portfolio and its hedge funds continue to perform as expected.

Filled with in-depth insight and expert advice, Evaluating Hedge Fund Performance can help you make the most of this flexible investment vehicle.

"This book provides a refreshing view of the pros and cons of investment in general and of hedge funds in particular. . . . Individuals wishing an honest introduction to the pros and cons of hedge fund investing will find this book worthwhile."
—From the Foreword by Thomas Schneeweis Editor, The Journal of Alternative Investments

"Finally, a book written by a market practitioner for market practitioners! A must-read for investors and practitioners alike."
—Joseph Pignatelli Jr., President, The Archstone Partnerships

"From picking the winners to going for the gold and searching for the Holy Grail (alpha), Tran does not leave any stone unturned. Highly recommended and a must-read for everyone interested in hedge funds and funds of hedge funds!"
—Greg N. Gregoriou, Associate Professor of Finance and coordinator of faculty research, State University of New York (Plattsburgh)

"Tran does a great job of explaining the dynamics of hedge fund performance in a simple and interesting manner. This book should be a great resource for anyone interested in hedge funds."
—Dr. Vikas Agarwal, Assistant Professor of Finance J. Mack Robinson College of Business, Georgia State University