Whenever discussing hedge fund investment policies with a potential investor, fund managers are invariably being asked against what benchmark the performance of a proposed portfolio should be compared. It is a legitimate question, however, more often than not, the investor expects a specific reference portfolio against which it should be measured. Unfortunately, it is not that simple.
Traditional investments are categorised in many ways such as large, medium or small capitalisation stocks, in
The week on Risk.net, December 2–8, 2017Receive this by email