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Hedge Fund

A form of open-end investment partnership whose main business is the investment in a range of financial securities, using a...

Feeder

A hedge fund that invests capital mobilized from investors mainly in a specific fund (a central investment vehicle) such as...

Feeder Fund

A hedge fund that invests capital mobilized from investors mainly in a specific fund (a central investment vehicle) such as...

Self-Reporting Bias

A bias (distortion) that results from the decision of a hedge fund whether to report its results (returns or performance)...

Self-Selection Bias

A bias (distortion) that results from the decision of a hedge fund whether to report its results (returns or performance)...

Survivorship Bias

A bias (distortion) that occurs if the database of hedge funds only includes information on surviving funds, i.e., those that continue to...

Stale Price Bias

A bias (distortion) that results from a lack of liquidity and a lack of marking to market value. This bias is caused by...

Leverage Risk

A hedge fund can borrow in order to enhance its overall returns. Borrowing, or using leverage, is a source of both volatility risk and financing...

Loss Carryforward Provision

An amount that is equal to the greatest value reached by an investor’s capital account with a hedge fund, adjusted for...

Inclusion Bias

A variation of the survivorship bias that results from inclusion of a new hedge fund into a given index and...