EARLY DRAFT: Principles of Economics Problem Set #1
Econ 1: UC Berkeley: Spring 2012: Section Reading Assignments

Buttonwood on Hedge Fund Returns


Hedge fund returns: : Michael Edesess of Fair Advisors draws my attention to… Adam Aiken, Christopher Clifford and Jesse Ellis…. The authors look at the so-called alpha of funds (jargon for skill) that voluntarily report their numbers…. When things go wrong for a hedge fund, they tend to stop reporting their numbers to the commercial providers but they still have to report to the SEC. Almost half of all such funds still operate for two years after they stop reporting to the indices. Such funds produce returns that are more than 7 percentage points a year below those that continue to report…