HEDGE FUND ESSENTIALS
What You Need to Know.
Greenwich Alternative Investments has been collecting and analyzing hedge fund data going back almost two decades. Key hedge fund investment characteristics and industry trends are presented in an effort to promote better understanding this alternative asset class.
History of Hedge Funds
Hedge Fund Strategy Definitions

Fund managers and investors rely on the 18 hedge fund strategy classifications established by Greenwich Alternative Investments.
Diversification Benefits
The addition of hedge funds to a portfolio of traditional assets provides valuable diversification benefits.
Correlation, Alpha & Beta
All three measures are interrelated and measure an investment’s performance relative to a specified benchmark.
Downside Protection
Capital preservation in falling markets is one of the most compelling benefits of hedge fund investing.
Measures of Risk
To completely understand an investment, it is important to examine common risk measures used by hedge fund practitioners.
Performance Measures
Risk-adjusted return statistics allow investors to compare the relative performance of hedge funds, based on their risk and return characteristics.
Hedge Fund Strategy Characteristics
The combination of non-correlated hedge fund strategies can provide investors with portfolio diversification superior to that offered through traditional asset classes.
Hedge Fund Universe Growth & Composition
The hedge fund industry has been growing at an average rate of over 17% over the last decade and significant growth is expected to continue.
Investing Considerations
A comparison of hedge fund investment vehicles and the ten most common mistakes hedge fund investors make.
COPYRIGHT © 2010 Greenwich Alternative Investments
Explanatory Notes