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FoFs

It stands for fund of hedge funds; a fund that invests in a variety of individual hedge funds, typically from...

Directional Fund

A hedge fund that doesn't hedge, whether partially or fully. A directional fund maintains some exposure to the market without...

Jensen’s Measure

A return measure that differentiates between returns generated through active management and those which simply result from high betas during...

Non-Directional Hedge Fund

A hedge fund that aims to generate a stable return regardless of market performance. In other words, it is designed...

Jensen’s Alpha

A return measure that differentiates between returns generated through active management and those which simply result from high betas during...

Fund of Hedge Funds

A fund that invests in a variety of individual hedge funds, typically from 10 to 30 underlying funds. As such,...

Beta Fund

A hedge fund that doesn't hedge, whether partially or fully. A beta fund maintains some exposure to the market without...

BAVAR Ratio

It stands for beta and volatility adjusted return; BAVAR ratio is a risk-return measure that is derived from the Sharpe...

Sterling Ratio

A measure of risk-adjusted return that is designed to apply the maximum drawdown as a measure of risk. This ratio...

Sortino Ratio

A risk-adjusted return measure that quantifies the return generated by a hedge fund for each unit of risk it takes....