(Moneyweb) Recent press articles have sparked important debate around topics such as what exactly hedge funds are, do they add value, do they really manage risk, and what are the alternatives. It’s important to understand that hedge funds do not explicitly manage risk or deliver a certain pay-off. Their primary objective is to beat a hurdle rate, and they often do this by taking specific and concentrated risk and using leverage. In the process they deliver an uncertain pay-off, but manage volatility.
The Chinese Curse: May You Find The Perfect Hedge Fund
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