The Main Characteristics of Hedge Funds


Elaboration, 2012

8 Pages, Grade: 8.0


Abstract or Introduction

This paper is based on “The Common Fund Hedge Fund Portfolio” case from the Harvard Business School (Harvard Business School, 1996). The data provided are taken from it.
It aims to support David Storrs, CEO of the Common Fund Company, decision if and how to include a hedge fund into the overall portfolio. The Common Funds has more than $17 billion assets under management for more than 1,000 educational institutions. Storrs considers to establishing a fund of funds, which he can offer his clients as a means of diversification. A hedge fund is an alternative, unregulated investment vehicle that can take long as well as short positions, use high leverage and write options or futures. The central question asks how Storrs should allocate different hedge funds in the funds of funds portfolio, taking into consideration the legal, economic and marketing issues, beside performance and volatility.

The first section will touch upon the legal, economic and marketing issues of hedge funds with regard to the decision to take by Storrs. The second section is going to investigate the proposed allocation of assets and reconsiders the asset allocation. Thereby not only quantitative measures are taken into account, but also qualitative factors. Finally, an advice is given on how Storrs should allocate the portfolio with regard to the circumstances of the Common Fund Company....

Details

Title
The Main Characteristics of Hedge Funds
College
Maastricht University
Course
Investment analysis and portfolio management
Grade
8.0
Authors
Year
2012
Pages
8
Catalog Number
V215072
ISBN (eBook)
9783656428152
ISBN (Book)
9783656439653
File size
365 KB
Language
English
Keywords
hedge funds, case study, The Common Fund Hedge Fund Portfolio, tiger fund
Quote paper
Maximilian Wegener (Author)Janis Klenk (Author)Christine Nicoll (Author)Julia Savvopoulos (Author), 2012, The Main Characteristics of Hedge Funds, Munich, GRIN Verlag, https://www.grin.com/document/215072

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