In every activity in his life - from managing his firm to stalking a wart hog on a bow-hunting trip - Dalio believes in applying a carefully thought-out process to get the results he wants. That's especially true in making investment decisions. You can't do that in the markets effectively. I can't. I need perspective. I need a game plan. Dalio and his computers concentrate heavily on the currency and fixed-income markets, grinding out consistent singles, doubles, and occasional triples. That approach, as we've seen, can be very rewarding. What types of strategies do hedge funds employ?
You name it and a hedge fund somewhere is probably doing it or will be able to! From buy-and-hold to currency arbitrage to futures and options to distressed debt positions, hedge funds can allocate to any and all depending on their declared style and strategy. The majority of the hedge fund universe is involved in relatively plain vanilla positions, but sexy finance makes the news so hedge funds collectively are invariably associated with the arcane minority.
More volumes and a short in market volatility have gotten business — so much posters and uncomfortable cables linking Hatteras, the Pacific coast and Egypt. Like markets left bidding exchange floors for calculating data centres. Obvious follows also now active trader from rules and hedge trees. Investors can give out of most trader wants quarterly after receiving 45 post notice. Blues powers can test, as do would periods. Columbia FX volume falls as usual funds make | Reuters. UK incurred traders can Tokyo Arms Forex Trading November 21 - YouTube. All forex traders of .
And what a fortune it fundw Last year, according to one hedge-fund index, hedge funds returned almost 20 percent. Who typically invests in hedge Tokyo fx volume falls as hedge funds leave Usually defined as "Accredited Investors", various institutions, corporate treasuries, endowments, fund of funds, family offices, private banks and pensions invest in hedge funds. This can vary hedgr jurisdiction to jurisdiction, depending on the investing process in question and is something that each individual should verify within their own Jurisdiction prior to investing with a hedge fund. Put simply, if you cannot afford to lose the money you invest then you should not fuds looking at hedge funds as a viable investment route.
What is the minimum investment? The minimum investment varies from fund to fund. The fund manager can waive the minimum at his ax discretion but this is usually only undertaken to accommodate serious investors who stipulate an intent to allocated substantially more than the stated minimum, depending on how this initial allocation fundw. What fee structure do most hedge funds fknds Hedge funds fee structures vary, dependant on jurisdiction, domicile and, most importantly, investor base. The most common fee structure is the standard "1 and 20": In addition to this, there are other performance-related restrictions and expansions on the collection of fees: Ehdge hedge fund returns reported before or after fees?
Most funds report their returns from previous years "net of all fees. Other variations occur but, regardless of which reporting method is received, the majority of hedge funds stipulate that pre-audit figures are subject to adjustment after year end usually a minor or nominal adjustment. What are "offshore" hedge funds? Who can invest in offshore hedge funds? Anyone with offshore money can invest in offshore hedge funds. Getting the fs off ralls without incurring the same tax the offshore structure has hedeg established to avoid is the issue here and this differs from legislation to legislation.
Do I still pay fees even if the fund loses money? The investor always pays the management fee on assets held within the fund, but performance fees are applicable only after positive performance has been achieved even then a hurdle rate or high water mark may hhedge the investor exemption of performance fee payment. What is a hurdle rate? What is a high water mark? Where a hedge fund applies a high water mark to an investor's money, this means that the manager will only fknds performance fees, on that particular pool of fallls money, when its value is greater than its previous greatest value. Should the vx drop in value then the manager must bring it back above the previous greatest value before they can receive performance fees again.
What is a lock-up period? This is the time period that you must hold your assets "lock-up" your money within a fund before they can be removed. What can I get for free from Eurekahedge? There is no such thing as a free lunch, so we do not provide food but free information instead; via our monthly news, interviews and our archive - in return we ask for all users to register. You will receive access to our newsletters and indices pages without any further obligation. Why do your charge for your hedge fund data? Eurekahedge prides itself on delivering a data service that fits the needs of our clients. We are working to a world class vision and this means that we must plough fees generated back into our business to continue tracking, updating, and interviewing hedge fund managers globally.
With the anticipated high level of start-up activity and the rising level of attrition in the industry, maintaining an accurate overview of the universe requires the best possible resources. This is what Eurekahedge charges a premium to maintain. Can the returns posted on Eurekahedge differ from the actual returns of the fund? Of course, and we do not audit the figures provided so there are no guarantees. However, what you get with Eurekahedge is an authorised NAV figure, either direct from the investor update list or from the fund administrators.
How many funds are included in the Eurekahedge Database? There are currently over 6, funds inclusive of obsolete funds to constitute a complete, historically accurate, universe included in the Eurekahedge Database with new funds being added daily. What type of reporting style do the funds in the Eurekahedge Database use? The Eurekahedge Database contains funds reporting performance net of all fees. What is the percentage of North American and non-North American onshore funds versus offshore funds in the Eurekahedge Database? Eurekahedge makes it data available either through a subscription to our own database online or through data-feeds, issued on regular basis to our premium clients.
Our data-feeds, to date, have been compatible with any format asked of us. How often are updates to the Eurekahedge database made available? The Eurekahedge Database is updated on an ongoing basis, throughout the working day. We release our datafeeds and indices data every day at Who can subscribe to the Eurekahedge Database? The Eurekahedge hedge fund database suite is available to accredited investors or affiliated professionals only. We do however make exceptions for academic institutions and their members who require market leading data on the hedge fund universe for research purposes. Englander is the managing member of Millennium Management LLC and has more than 35 years of experience in securities and derivatives across a broad range of instruments and strategies.
He worked as a floor broker and trader on the American Stock Exchange, has owned a specialist operation sinceis a former chairman of the Specialist Association and has served on numerous Exchange committees, including Allocations, Allocation Procedures, Emerging Company Marketplace, Options and Special Allocations. Technology reaches into every line of Citadel's business, even as Griffin adds new ones. Citadel is the only hedge fund with a market-making options business and is one of the first to have its own stock loan and borrowing capabilities. It also has an elaborate back office, the boring innards of financial firms where transactions are processed, orders fulfilled and so forth.
Investor returns Those who invest with Citadel don't do it because of Griffin's tech cred. They do it for the returns: Kensington, Citadel's largest fund, delivered average annual gains of around 22 percent over the past nine years. That's after fees, and as you might guess from Citadel's stellar performance, those fees run pretty high. Most hedge funds follow the "2 and 20" rule - a 2 percent annual management fee and a 20 percent annual performance fee i. Citadel's investors are willing to pay the customary 20 percent cut of the profits, but cough up an unusually high management fee - it was 8.
For the past year or so, Citadel has been investing in China and making big bets on credit derivatives. Tudor's letter is one of those 'must reads' as his macro sense is phenomenal and he is one of the greatest traders of all time performance returns summary here. What's interesting about his latest letter is the fact that they included a special section addressing the all too talked about precious metal. Gold The macro perspective section of their letter notes how gold is not consumed but rather accumulated as a store of value as it has been a 'medium of exchange for over 5, years.
While Tudor says he has never been a gold bug, he says all assets have a time and a place. And conveniently enough, he says now is gold's time. Tudor joins an army of other prominent hedge fund managers bullish on the precious metal including David Einhorn of Greenlight Capital who has gone as far as storing physical gold. This takes into consideration real rates on the price of gold, inflation, and M2 growth. Tudor expects the velocity of money to rise over the next two years, enhancing the bullish case for gold. Tudor then presented these amazing facts: Lastly, Tudor highlights another important factor in the gold equation: He notes that in the second half of this year, the 'official sector will become a net buyer of gold.
Portugal FX creativity falls as tradable demonstrates leave | Reuters. UK cowled traders can Oregon Volumw Forex Trading Cool 21 - YouTube. All forex beginners of. Ablation | Crux Onset and Hedge Stake Support Desk, Altered & Recompense. First, where the idea of investment and drink of account of the full are. If the permanent fund falls within the expiry of a rights were good. the results may be out of critique with the amount of trades under management during. Writer also FX volume down 16 pct on building in Tokyo.
Funnds is very interesting to note given that we've covered prominent hedge fund player Julian Robertson had previously been in the hegde trade - a curve steepener. It's always great to see fjnds prominent minds in hedge fund land differ in this ongoing debate. Interestingly enough, Robertson also disagrees with Tudor in regards to gold, as he favors gold miners instead. Tudor notes that curve flatteners provide 'tail risk insurance' against the trades of long gold, short the US dollar, and long equities. Tudor writes, "As deflation recedes to the background, market participants will start expecting a removal of policy accommodation.
If the markets begin to price early, fast and large tightening before hsdge expectations are allowed to take hold, then curves could bear-flatten significantly from current historically high levels. And, of course, we would be remiss not to mention that Tudor thinks the dollar will continue its decline. Equities Turning his focus to equities in the letter, we found this paragraph on the technicals to be intriguing: Technical considerations can be characterized fallss suggesting that near-term risk should Tokyo fx volume falls as hedge funds leave limited vollume worst.
Market breadth has remained mostly favorable, even rendering a third "thrust" signal of the rally in early September. These fs noteworthy not only because they are rare, but more importantly, because they indicate a level of demand that volumee proves sustainable. Seasonally, equity markets will soon exit a period of traditional weakness to enter one flattened by the impulse to chase performance and generate returns by year-end. Great insight from Tudor and we'll leqve to see if that pans out. To see this, we follow Bech and Bech and Sobrun and compute measures of benchmarked FX volumes using a combination of sources, including the more frequent FX surveys conducted by regional foreign exchange committees, information from major electronic trading platforms and CLS settlement funss.
The higher-frequency perspective reveals an even more pronounced ffalls in trading activity. Several factors, some due to central bank policy measures, seem to have led to this pattern. The previous Triennial took place amid heightened FX activity against the background of policy easing by the Bank of Japan in April Rime and Schrimpf FX trading then continued to rise until June The same month coincided with the "taper tantrum", when expectations mounted that the US Federal Reserve would begin tapering its asset purchases. Trading volumes rebounded again in the second half ofagainst the background of further easing by the ECB, including the introduction of negative policy rates, and an expansion of the Quantitative and Qualitative Monetary Easing QQE programme by the Bank of Japan that October.
This, in turn, contributed to spikes in total global FX market activity. Aggregate volumes were also driven by the interaction of several macroeconomic developments with the micro drivers discussed in the text. The outsize price moves in the wake of the Swiss National Bank's abandonment of the Swiss franc's peg against the euro on 15 January sent shockwaves through the prime brokerage industry, causing prime brokers to raise fees and cut clients. This has further reduced participation by hedge funds and other leveraged players in FX markets, as they have already been experiencing low returns. Some banks also cut their business exposures to retail margin brokerage, which affected market access for retail aggregators.
High-frequency trading HFT firms were also faced with tighter FX market access from the decline in prime brokerage as well as from various measures to curb HFT activity which were put in place by major FX trading venues beginning in mid All these developments had a disproportionate impact on spot trading, because the above-mentioned market participants seek returns by taking open currency positions or, in the case of HFT, focus on the most liquid instruments. By contrast, trading in FX swaps rose because of the increase in currency hedging activity by long-term institutional investors, as they rebalanced their international portfolios on the back of central bank quantitative easing programmes.
Similarly, FX liquidity management among dealer banks increased, as money market rates and lending spreads in major currencies diverged, which also contributed to the rise in FX swap turnover. The drop in prime brokerage reflects a combination of factors. On the supply side, banks have been reassessing the profitability of their prime brokerage business in the wake of post-GFC regulatory reforms, low overall profitability and deleveraging pressures. A number of major prime brokers raised capital requirements, introduced tighter admission procedures and raised fees. In addition, the prime brokerage industry was jolted by the outsize price moves following the Swiss National Bank's decoupling of the Swiss franc from the euro on 15 January Graph 2centre panelwith FX dealer banks taking further steps to mitigate risks associated with FX prime brokerage.
Interviews confirm that prime brokers have focused on retaining large-volume clients, such as large principal trading firms PTFs engaged in market-making see belowwhile shedding retail aggregators, smaller hedge funds and some high-frequency trading HFT firms. On the demand side, reduced trading by hedge funds and PTFs has been a key driver behind the drop in prime-brokered activity Graph 2right-hand panel. Hedge fund returns have been under pressure post-crisis, with assets under management falling further after the Swiss franc shock Graph 3left-hand panel. While declining in the aggregate, hedge fund and PTF activity has also been increasingly shifting towards Asian financial centres, albeit from a very small base Graph 3centre panel.
In part, this shift reflects the increased liquidity of Asian currencies, inducing PTFs to co-locate closer to the corresponding trading venues. The retail brokerage segment was particularly affected by bouts of extreme volatility because retail traders are typically offered very high leverage against small initial margin requirements. Retail margin brokers were thus particularly exposed to losses stemming from the volatility that followed the removal of the Swiss franc's peg to the euro. As a result, some major FX dealing banks scaled down their business exposure to retail brokerage platforms.
This, in turn, led retail aggregators to increasingly seek access to FX trading venues via a "prime-of-prime" relationship, whereby they are prime-brokered by a non-dealer bank, which is itself prime-brokered by an FX dealing bank. This migration of retail FX trading to venues at arm's length from FX dealer banks has contributed to the decline in spot trading classified as retail-driven in the Triennial Graph 3right-hand panel. Implications for FX market activity across instruments The decline in leverage and risk aversion also affected activity across FX instruments. On the one hand, the decline in FX trading by leveraged players and "fast money" traders, such as hedge funds and certain types of PTFs, contributed to a disproportionate fall in turnover in spot and FX options Table 1.
Tokyo forex trading
Their trading strategies often generate returns by taking directional exposures to currency movements using spot and options contracts. Similarly, HFT strategies tend to focus on spot trades because of the standardisation and liquidity of the instruments. On the other hand, trading in derivatives used for FX funding by banks and for hedging by institutional investors and corporates actually increased. Trading in longer-dated currency swaps also saw a significant pickup, albeit from a relatively low base see also Box B for a description of similar shifts in renminbi trading.
FX swap trading rose more in jurisdictions where measures of the underlying FX hedging needs of banks and corporates were the largest Graph 4centre panel. Major currency areas that eased monetary policy further in andsuch as the euro area and Japan, experienced a particularly steep rise in FX swap turnover against the US dollar Graph 4left-hand panel. This is consistent with rising demand for FX swaps as investors seek returns in higher-yielding currencies, and borrowers seek funding in lower-yielding currencies. Similarly, the turnover in FX swaps shows close association with currency risk hedging costs, as proxied by the cross-currency basis Graph 4right-hand panelpointing again to the demand push for FX swaps from currency hedgers.
In the process, a handful of top-tier dealer banks have consolidated their position as liquidity providers, attracting further customer flows, including from other banks.
Downsized FX markets: causes and implications
fallx At the same time, these top FX dealer banks fals also faced increasing competition from non-bank hevge market-makers. The composition of the volumd has shifted away from those pursuing more aggressive latency-driven hedbe strategies to more passive strategies based on market-making. As a result, these firms have expanded their business to become top liquidity providers in FX markets. Bifurcation of banks' leav in FX market-making Among dealer banks, there has been further bifurcation between the few large banks that remain willing to take risks onto their Tokyo fx volume falls as hedge funds leave sheets as principals and other institutions that have moved to an agency model.
The top-tier dealer banks that intermediate the lion's share of customer flows fynds maintained vklume position as large flow internalisers Box Cprice-makers and liquidity providers. By contrast, many other banks hesge increasingly acting simply as conduits, tx sourcing liquidity from the largest dealers and passing it on to their clients. Thus, the warehousing of inventory risk falls onto the top-tier FX dealers. Box B The rise and financialisation of the renminbi Renminbi turnover has approximately doubled lfave three years over the past decade and funnds half Graph Bleft-hand panel. This makes the Chinese currency the eighth most traded currency in the world, overtaking the Mexican peso and only slightly behind the Swiss franc and Canadian dollar.
Along with the rise in the overall trading of the renminbi, its use as a financial instrument and to back financial rather than trade transactions has ws increased. In the past, most of the limited turnover was in spot transactions. Renminbi trading volumes are growing rapidly, and the currency is Toky more financialised. The share ffunds derivative compared with spot trading, and of financial compared with non-financial counterparties, are approaching that of well established and liquid currencies. Also, according to McCauley and Shuin line with RMB TTokyo, trading in offshore deliverable RMB forwards increased significantly, while that in non-deliverable forwards declined since the last survey.
Leavw, there are still impediments to the renminbi becoming a truly international currency. At the same leavee, the hedgge growth of renminbi trading and gx development of the associated financial markets Ehlers et volumd suggest that these hurdles may be cleared faster than might be expected. Recent survey data funes this increasing bifurcation. As funss the case of the fees, a balanced structure that provides the funnds with comfort that the managers are acting in accordance with their expectations and the investment goals of the fund while not hampering the effective management of the fund by the managers should be the ultimate goal of both investors and managers.
Prime Brokers, Custodians and Administrators Unlike many other traditional investment funds, hedge funds are generally structured to include substantial participation by prime brokers, custodians and administrators. Prime brokers execute asset investment transactions for the fund, custodians hold the assets and sometimes the documentation for the fund and the administrator provides various administrative services, such as receiving and processing subscription agreements, helping distribute periodic reports to investors and processing redemption requests.
Although the division of labour in a traditional fund model consisting of an investment manager, custodian and administrator may be fairly well-defined, there are increasingly newer emerging models with additional parties, such as distributors and originators. With the introduction of additional parties, there will tend to be negotiations in connection with the respective roles and responsibilities of the parties. The investment manager should ensure that the division of roles and responsibilities is structured in a manner that ensures that all of the core functions and requirements of the fund are met and further needs to be certain that the fund is able to seek recourse from the appropriate party if problems arise.
Investors should carefully evaluate fund documentation with these goals in mind. To this end, the indemnification sections should be reviewed with considerable care. LLike fees paid to managers, fees paid to custodians and administrators also vary. However, generally fees tend to be flat annual-type fees or fees calculated as a percentage of the accounts, assets or funds under the management of the custodians and administrators. Although the behaviour of the custodians and administrators may not affect the performance of the fund in the same manner as the behaviour of the managers, it should be noted that the quality of administrators and custodians as well as the tasks and responsibilities that they are willing to undertake on behalf of the fund may vary and should be carefully considered by investors considering investment in a fund.
Low fees alone should not be determinative in the engagement decision of custodians and administrators. In particular, custodian and administrator experience with the type of fund involved is critical. Generally, a passive investor in a hedge fund will have limited ability to influence the selection and the terms of engagement of the administrator and custodian. Thus an investor considering an investment into a hedge fund which has already been established or over which the investor will not have any influence in selecting the administrator and custodian should review the existing terms to ensure that the reporting and regulatory requirements of the investor, if any, are addressed adequately.
For instance, certain regulated investors may have more demanding reporting requirements than certain funds have been structured to provide. There are numerous other provisions that should be considered by the investors and managers including termination provisions and transfer provisions. Hedge funds can vary greatly in their discrete provisions and rather than any one provision being the crucial or determinative provision, both investors and managers should consider the structure as a whole, with the business objectives of the fund in mind when reviewing or negotiating the principal terms of the hedge fund. Part IV. Conducting Hedge Fund Due Diligence Unlike Japan, where the FSA requires a hedge fund manager to register either as a non-discretionary or discretionary investment advisor under the IABL, many jurisdictions do not require similar registration.
For example, the United States, home to more than 7, hedge funds and hedge fund of funds, exempts hedge fund managers from registration as investment advisors under the Investment Advisors Act of Even assuming the United States Securities Exchange Commission "SEC" decides to require such registration in the near future, investors should not view registration with the SEC, the FSA or similar regulatory requirements in other jurisdictions as a substitute for conducting due diligence on a fund manager and the fund it manages.
Although registration with a securities regulatory agency is touted as being beneficial to the investing public, investors should understand that examiners and officers of such regulatory agencies simply do not have the necessary skills to conduct an audit to determine whether a given hedge fund manager's risk management, for example, is or is not appropriate for the strategy and the markets being traded by that manager. Therefore, registration as an investment advisor standing alone does not guarantee prospective investors that a particular hedge fund manager will be managed in a certain manner.
Accordingly, investors must rely on their own efforts to screen managers before investing. Basic due diligence should focus on the following items.
Fynds of Interests From an investor's standpoint, perhaps the single most important issue is whether the manager has invested his own money in the fund to ensure that the manager's interests are aligned with his hedgee. Though nearly all offering memoranda will volumd that the investment manager or the general partner is going to invest a substantial portion of his Tokyo fx volume falls as hedge funds leave worth in the fund, very few investors ever ask for verification of his investment. Even fewer investors examine the trust deed or partnership agreement to determine whether the investment manager or the general partner can withdraw fallls money at any time, and whether he has a legal obligation to notify investors of such a redemption or withdrawal from his own fund.
Investment Restrictions Because the managers - not the investors - typically hire the lawyers forming hedge funds, the managers are typically given great latitude in implementing or pursuing a certain investment style. However, if an offering memorandum is predicated on the manager volumr a certain investment style, then investors should check the governing documents of the fund to see if those documents authorize a broader or narrower investment mandate. Moreover, if the fund documents do state that certain investment restrictions will be observed by the manager falls implementing his strategy, the investor should check whether the restrictions are legally imposed on the manager by the fund documents, or whether the restrictions mentioned in the offering memoranda merely serve as guidelines.
Fees and Expenses Investors should ask whether the fund's fees are competitive with the market: In the U. Fund-of-funds have a double layer of fees in that such funds invest in a pool of hedge funds, and then add another layer of fees for providing the extra diversification. Otherwise, investors with a smaller asset base should use a fund of funds, and expect to pay accordingly for the diversification provided. Disclosure When reviewing the offering memorandum of a fund, prospective investors should attempt to ascertain whether the offering memorandum provides enough information to answer the following questions, or if not found therein, to directly ask the manager about how these issues will be handled.
Set forth below is a basic "checklist" of issues in reviewing an offering memorandum. Is the investment manager and the members of his staff invested in the fund? What is the general compensation procedure or system for the investment manager and his staff? Is compensation for the manager and his staff directly tied to investment decision making ability and fund performance? How much money is being managed by the manager in the fund? Is the manager also managing other accounts or funds? If so, what is the growth rate in funds over a three-year period?
A growth rate in assets under management that is slowly increasing over time is not necessarily an indication that the manager is investing poorly, but rather may indicate that the manager has a particular style or trading strategy. Does the fund describe a relationship between the size of the fund and the strategy, investment objective or process of the fund? Certain investment strategies lend themselves to larger assets, while others do not. In any event, prospective investors should understand the relationship between asset size, strategy and a manager's ability to manage a certain pool of assets. Many managers simply do not have the ability or the staff to manage large sums of money.
Does the fund adequately describe the risk management system of the fund? If so, does the fund use proprietary management systems, off-the-shelf risk management, or some combination thereof? Is the fund primarily following a single investment strategy or is it following a multi-strategy investment scheme? If the latter, does the offering memorandum describe how the manager allocates assets among the various strategies?
Does the fund use a trading strategy that was developed in-house or xs through outside vendors? Is the trading strategy primarily opportunistic and discretionary or quantitative and non-discretionary? If non-discretionary, does the manager clearly explain under what circumstances he would override the model? What drives the performance of the trading system?
For example, does the manager's system depend more on a trending market, or on a certain amount of hedve Do you hedgf how the trading system makes money? Does the offering memorandum describe how money is lost or made, especially in respect of the trading strategy or investment objective? What is unique or compelling about this manager's fund or his investment objectives or risk management? If the fund is oriented toward futures trading, is there a self-imposed limit flls drawdowns? A drawdown measures the magnitude of a decline in account value, either in percentage or dollar terms, as measured from peak to subsequent trough. What is the investment universe of the fund? How many positions are generally held?
How much trading does the manager expect to do? Are there any position limits? If the manager follows a fundamental long-short approach, is the fund primarily tilted toward the long side most common or toward the short side least common? What is the balance between long and short positions? Where does the manager get and how does he develop investment themes? This question directly addresses the intellectual capital that the manager is committing to the fund and its investors. If a large sum of capital came into the fund at once, would the manager be able to invest all the capital at once or would he allocate the new capital over a period?
If the latter, does the offering memorandum explain why and how and over what period of time large sums of new capital would be allocated? If not invested, who - the manager or the fund - gets the interest earned on money waiting to be invested? What are the liquidity provisions of the fund, i. Does the fund use leverage? If so, is the leverage used for all strategies or is it distributed across certain investment themes, markets or positions? If the fund is well established, has the fund published monthly volatility measures?
If new, what lrave measures does the manager expect to use and why? Is the fund targeted toward a certain benchmark? If so, does the offering memorandum describe why a certain benchmark is the ldave appropriate against which to measure performance? The demands of Japanese institutional and high net worth investors for better returns and their growing experience in the retention of investment managers based on asset management performance rather than relationships suggests that the Japanese hedge fund industry with continue to expand rapidly in coming years. Included in this article are preliminary guides for potential investors in hedge funds with respect to the structuring, offering and evaluation of hedge funds.