Finding the middle ground

Hedge funds

Hedge funds have become an investor’s lifeline. Even shaving off an arbitrary 200 basis points to correct for well-knownhedge fund index distortions such as survivorship bias1 and backfill bias2, theCSFB/Tremont Hedge Fund Index returned 23bp year-to-date in May versus a fallof 3.6% in the S&P 500 equity index.

Private bankers and high-net-worth asset management company specialists reportstrong demand for hedge fund products. High-net-worth investors (HNWIs) do notvary much from institutional inv

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