Investing in Hedge Funds: A Survey--(useless??)

Has anyone read this section yet in Alternative Investments on Hedge Funds? There are no bold words, and I really don’t know what info is relevant or what I should be memorizing/studying. Is this section pointless, a bunch of fluff, or what??

It’s purely qualitative. I’d recommend rereading just prior to the exam. I don’t mean to downplay its significance bc it’s ripe for a question or two (esp about a particular fund strategy), but it doesn’t require the kind of deep thought and analysis like so many other topics; it’s just a lot of words. Reread before the exam and file into short-term memory, that’s my plan.


Yeah I hear u–I mean yeah I saw they put all the different hedge fund strategies in there n we should know which ones have the highest sharpe ratios, have excess kurtosis, are the most volatile, etc. Just those next few pages after that I thought was some fluff. I’m not exactly gonna read right before the exam, that’s not how i roll, we wanna be super prepared going in so we dont have to wait a year to take it again. If u think about it, altnerative inv will focus on either 1) Real estate questions 2) PE/VC questions, or 3) hedge fund questions. So we won’t just get a couple questions, well get 6.

I get the feeling that CFAI is not particularly fond of hedge funds. They spend half the chapter talking about how hedge fund returns are not that great and how they are more risky than historical data suggests.

6 questions, yes. I was just saying that we might possibly get 1 or 2 of the 6 that refer to hedge funds. And to your point about main topics within Alt investments, i would think a main topic within Hedgefunds would be fund strategy.

Well I wouldn’t count it out considering last year there were 6 questions on hfs

Also, go with the focus on LOS. Schweser does a good job on this one.