Do Hedge Funds Hedge in Recent 20 Years?

DOI

10.2991/assehr.k.211209.056How to use a DOI?

Keywords

Hedge Funds; S&P 500; Sharpe Ratio; Excess Return; Portfolio Management

Abstract

This work does a follow-up study on Do Hedge Funds Hedge? focuses on the returns of hedge fund industry, and finds how its reported returns are resistant to market fluctuations. In this work, monthly data for different hedge funds and S&P 500 are compared, to generate correlation between them over various periods. As a result, a huge discrepancy between the changing volatility and hedge fund stable returns recommends the investors to review the reports given by hedge fund companies, which are possibly manipulated with strategies to highlight high returns and low risks over time. This work indicates a continuous trend in the hedge fund industry that is proven by the previous study, in the more recent timeframe, providing investors with insights to the reported returns over market risks.

Copyright

© 2021 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Boya Di
AU  - Shuming Zhao
AU  - Yuting Lei
AU  - ZhiHao Ke
AU  - Gaohao Zhu
AU  - Ziyuan Kang
PY  - 2021
DA  - 2021/12/15
TI  - Do Hedge Funds Hedge in Recent 20 Years?
BT  - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
PB  - Atlantis Press
SP  - 330
EP  - 336
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.056
DO  - 10.2991/assehr.k.211209.056
ID  - Di2021
ER  -