Hedge Fund Investing: A Practical Approach to Understanding Investor Motivation, Manager Profits, and Fund Performance
by Kevin R. Mirabile
Summary
The hedge fund industry has attracted the attention of HNWI and institutional investors over the past 20 years. Assets have been allocated to the industry due to the positive impact on returns and risk as compared to traditional investments alone. Investors remain cautiously optimistic that hedge funds can help them achieve their target portfolio returns, despite the fact that the industry is still growing and not yet mature. The hedge fund industry itself is also going through a rapid degree of change and transition to retool and respond to the demands of more institutional investors. The institutional investor wants strong controls, effective risk management, solid business models, and institutional infrastructure in addition to a hedge fund generating high-quality returns.
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