OPPapers.com

Hedge Funds: Strategy And The Performance In Volatile And Less Volatile Markets. The Case For The Long/Short Equity Hedge Fund

Hedge funds: Strategy and the performance in volatile and less volatile markets. The case for the long/short equity hedge fund
Julien Suzor
2/1/2008
2 | P a g e
Table of Contents
Introduction ............................................................................................................................................ 3
Chapter 2 Hedge funds ............................................................................................................................ 4
2.1 Introduction ............................................................................................................................... 4
2.1.1 Hedge Fund History ................................................................................................................ 4
2.1.2 Hedge Fund Styles .................................................................................................................. 4
2.2 Long/Short equity ...................................................................................................................... 5
2.2.1 The Strategy ............................................................................................................................ 5
2.2.2 Advantages and Disadvantages .............................................................................................. 6
Chapter 3 Volatility ................................................................................................................................. 8
3.1.1 What is volatility? ................................................................................................................... 8
3.1.2 Causes of Volatility ................................................................................................................. 9
3.1.3 Implied Volatility .................................................................................................................... 9
3.2.1 Market Volatility...