Hedge Fund Statistics such as Alpha and Beta.
How is a Hedge Fund’s Performance measured?
By Julie Scuderi - April 7th, 2008
Hedge fund managers use a variety of statistics to inform investors of the fund’s progress, as well as to lure new investors by showcasing attractive returns. Graphs, numbers and charts are all used in the marketing process and will appear on the hedge fund’s website for all accredited investors to see.
Here are just a few … Continue Reading
Sharpe and Sortino Ratios
By HedgeCo Archives - April 7th, 2008
What is the best way to quantify an investment’s risk? The answer is still open to debate, and the Sharpe and Sortino Ratios reflect two separate camps of thought.
One of the most commonly used measurements of risk is variance, the dispersion of an investment’s returns from their mean. In the calculation of this value, no … Continue Reading
Sharpe Ratio Definitions
By HedgeCo Archives - April 7th, 2008
Interpreting the Sharpe ratio
When interpreting the value of an investment’s Sharpe ratio, it is important to understand the formula behind the number. In this discussion, we will take a closer look at the basic analytics behind the Sharpe ratio, and then consider the effect that each component may have on the calculation.
Although the Sharpe ratio … Continue Reading
