23. Investing in Hedge Funds

  1. H. Kent Baker and
  2. Greg Filbeck
  1. Hunter M. Holzhauer

Published Online: 2 APR 2013

DOI: 10.1002/9781118656501.ch23

Alternative Investments: Instruments, Performance, Benchmarks, and Strategies

Alternative Investments: Instruments, Performance, Benchmarks, and Strategies

How to Cite

Holzhauer, H. M. (2013) Investing in Hedge Funds, in Alternative Investments: Instruments, Performance, Benchmarks, and Strategies (eds H. K. Baker and G. Filbeck), John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118656501.ch23

Author Information

  1. Assistant Professor of Finance, Penn State Erie, The Behrend College

Publication History

  1. Published Online: 2 APR 2013
  2. Published Print: 18 MAR 2013

ISBN Information

Print ISBN: 9781118241127

Online ISBN: 9781118656501

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Keywords:

  • hedge funds;
  • speculative funds;
  • long/short portfolios;
  • market neutral

Summary

This chapter provides an introduction into the extensive field of hedge fund investing, which has grown over the last 60 years to become a major influence on the financial markets. As this influence grows, new pillars of empirical research are raised to shine more light on the hedge fund industry from every angle, including performance, risk management, market impact, replication strategies, and fund-of-funds strategies. Detailed analysis of each these respective areas of empirical research can be found in the following chapters. However, to firmly support these pillars of research, this chapter builds a solid foundation based upon the history and purpose of hedge funds. Thus, this chapter is built upon more foundational themes for hedge funds, including their structure, history, data biases, strategies, and future.