The search for hedge fund alpha by ProQuest


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									   The search for hedge fund alpha

while hedge funds continue to increase their funds under management, the evidence
 of their ability to earn alpha or excess returns remains mixed. our study considers
whether hedge fund returns can be explained by a simple multi-factor model without
the inclusion of complex option based investment strategies. we found that over the
  1994–2006 period, only 5–7% of the hedge funds we studied earned statistically
       significant alpha, suggesting that hedge fund alpha is as elusive as ever.

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