|Dynamic Analysis of Hedge Funds|
|Written by Casey Edward O'Meara|
As the trading strategies of alternative investment funds continue to grow in complexity, investors find themselves less and less able to gauge the risks inherent in such investments. With hedge funds intent on guarding proprietary methods and strategies, how can investors gain insight into how their money would be managed? How can they truly determine the risk that their money would be taking on?
This is just one of the many challenges Michael Markov meets on behalf of his clients.
On October 9th, Markov, the founder, CEO, and
director of research of Markov Processes International, spoke to the
Masters students in Math Finance about the growing inadequacy of
traditional performance analysis with regard to alternative
investments. Markov however is not discouraged.
It is by no means trivial but the insight it produces can be of tremendous value. With a time series of a hedge fund’s positions in hand, Markov Processes International is able properly assess the strategies and aggressiveness of that particular fund and shed some light onto an area that has become increasingly dark for its clients.–CASEY O’MEARA '08