Alpha is an annualized return measure that compares the risk and reward returns of a fund to its benchmark.
This is where dynamic allocation of reserves across deals can play a big role in enhancing the capital-adjusted returns of a fund.
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To determine the highest-earning hedge fund managers and traders of 2012, we examined hedge fund returns and worked to understand the fee and ownership structure of a wide array of hedge fund firms.
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The founder and head of Appaloosa Management guided his flagship hedge fund to net returns of nearly 30%.
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Morningstar currently gives USAGX a four-star rating and lists annualized returns for the fund of 24.21% over the last 10 years.
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Such a return-chasing approach might be justified if investors were rightly anticipating that a short-term improvement in the returns of a particular hedge fund indicated a long-term shift in favour of its style.
But Mr Montier points out that the correlation of returns from different hedge-fund styles (which invest in a wide range of assets, from corporate bonds through to equities) has risen from around 0.3 in 1993 to 0.8 in 2009.
It's all about the returns: A few years ago, most hedge fund investors were realizing returns of 15% or better without extensive borrowing.
In aggregate the results have been stunning, comparable to the returns of the most blistering hedge fund.
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In 2006, his fund generated returns of more than 300%.
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Additionally, the funds are sector neutral, so what you see is that the biggest determinant of the returns in the fund is going to be the theme that we are trying to emphasize, whether it be small securities, cheap securities, or high-quality securities.
They assumed that all hedge fund vehicles would provide absolute returns regardless of market conditions, that they were completely transparent if the fund manager said so, and they would provide liquidity if a redemption was met.
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The SEC accused Mr. Kapur of continuing to report positive returns for the hedge fund even after it was liquidated and ceased trading, as a way of attracting investors to his other funds.
His flagship hedge fund posted net returns of about 30% by betting on stocks and other securities at key times.
Buyout pros say returns during the early years of a fund often improve later as investments are sold.
When rates get this low, the chances of additional appreciation are practically nonexistent, making the reality of negative bond fund returns imminent.
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The data-mining software is partly based on a model the SEC developed to trawl through hedge fund returns for signs of Bernard Madoff-style chicanery.
If no investor had any clear advantage over another, would there be a range of yearly returns in the mutual fund industry from significant losses to 50% profits, or more?
As the media churns out fanciful stories about wildly successful hedge fund managers that take huge risks and produce spectacular returns, investor demand grows and the number of hedge fund operators mushrooms.
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Meanwhile, the Yacktman Fund is a good example of an attractively priced mutual fund: stellar returns and only 0.8%.
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With so much turmoil in the venture capital business, from the rise of competing super-angel investors to tepid fund returns for the past 10 years to some big IPO duds this year from the likes of Facebook, the future of this economic engine of innovation is pretty murky.
Amihud uses a statistical measure called "R-squared" to observe how much of active fund managers' returns can be explained simply by the index.
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The average equity-fund investor saw annual returns of only 3.49% in the 20 years through 2011, according to the latest analysis from Dalbar.
Unlike the low trading costs for a stock index fund, the adjusted returns of an art index would be meaningfully lower in an art index if these costs were accounted for.
If you invest in a hedge fund, your adviser should be able to compare its returns against that of an index, such as one of those composed by Hedge Fund Research Inc.
Drawing on Warren Buffett's observation that it cannot be a coincidence that a group of investors taught by Benjamin Graham can make above average returns, Mr Mallaby presents original research on the performance of a group of fund managers who worked with Julian Robertson at Tiger Management, and similarly reveals superior returns.
But Och will eventually have to score some big returns for the shares of his publicly traded hedge fund firm to reach the level of its 2007 initial public offering.
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Three factors determine the health of any pension fund: asset returns, company contributions and the discount rate, which is used to calculate the present value of pension liabilities and is tied to interest rates.
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