There has been an undeniable trend for long-only managers to set up long/short hedge funds. This has posed a dilemma for many investors, including institutions and funds of funds managers. How can such managers be evaluated when they have no previous hedge fund experience and are unproven in their short selling skills?
Decisions usually need to be made quickly close to the launch of a new hedge fund, as the most successful hedge funds tend to close to investors in a short space of time. However,