Alternative Investments Flashcards
The fact that hedge funds are not required to report results or performance can lead to a benchmark that has what
upward bias
What are not considered alternatives
equity derivatives
In the hedge fund industry, when a fund performs poorly and eventually closes, the fund exposes a benchmark to increased what
survivorship bias
Strategies that focus on worldwide economic issues
Global macro
Risks that are particular to alternative investments relative to traditional investments include
fund managers may seek low risk to ensure compensation
When reserching an alternative investment and how the manager creates a unique advantage, should research what
strategy not structure
Investors looks for stock like returns should turn to
directional absolute strategies
Direct investment that avoids layering fees
Private equity
Fixed income arbitrage strategies typically deal with what
large quantities of highly liquid government debt
The long/short descriptor refers to the funds what
hedging strategy
May limit ability to make a decision on the hedge fund industry or particular investment based on what
Survivorship bias
CPI can lead to higher what
Interest rates
A hedge fund manager who is attempting to capture profits when markets decline is employing what type of strategy
dedicated short bias
A hedge fund may choose to be available in public or private markets. When researching this fund to verify the type of market, investors will want to review the
institutional structure
A hedge fund manager takes equal long and short positions within a specific industry. Most likly employing a
market neutral strategy
