Hedgefund Benchmarking

CFA Level III
#1

Were the looking for specific hedgefund benchmarking items, or could any 3 from the samuri list work? I thought median fund was way too ambiguous.

#2

for some reason, I blew this also. Total brain f*rt.

#3

Not specified in advance, not investable (transparency problem), put one another as third.

#4

hedged my bet…not sure… put down 2 from the samuraui list and for last one put survivrship bias

#5

iloveswaps629 Wrote: ------------------------------------------------------- > hedged my bet…not sure… > put down 2 from the samuraui list and for last one > put survivrship bias 2 biases. one samurai…

#6

I thought the hedge fund biases were: survivorship stale prices backfill

#7

3 reasons have to list out…My answer is 1) bias 2) not investible 3) not specify in advance

#8

The thing that should have tipped everyone off to samurai was the “median” part. I think if they were looking for the other it would’ve been more general.

#9

my sense is the biases are better… but i think it’s all good

#10

^ well see. I really think the median part was the CFAI’s way of tipping people off - but maybe they will accept both!!

#11
  1. Fund managers tend to show good result and hide bad result. Upward bias. 2. Popularity Bias 3. Survivorship Bias
#12

Hmm…i put not investable, not specificied and ambiguous since they referred to “Manager Universe”.

#13

I used samurai as it was not under an alternative investments questions but rather a monitoring questions (based it on the study session it came from)

#14

Didn’t it say that they were thinking of a manager’s universe as the benchmark (or something to that effect). In that case, wouldn’t you use SAMURAI?

#15

all i remember is they proposed the “median of a universe of hedge funds” or something like that and I just kept sitting there saying “median what, median what, median what???” I initially started with survivorship bias but went back to samuri because I just had no damn clue what they were actually proposing.

#16

landrybj Wrote: ------------------------------------------------------- > I used samurai as it was not under an alternative > investments questions but rather a monitoring > questions (based it on the study session it came > from) Good thinking…

#17

I put down all of samurai then picked 3 that it failed. Median universe fails everything apart from measurable. Think I chose to elaborate on unambiguous, specified in advance, investable.

#18

kwokchun30 Wrote: ------------------------------------------------------- > 3 reasons have to list out…My answer is 1) bias > 2) not investible 3) not specify in advance take it to the bank.

#19

cdogstu77 Wrote: ------------------------------------------------------- > Hmm…i put not investable, not specificied and > ambiguous since they referred to “Manager > Universe”. Exactly what I did.

#20

Me too