Alternative investment strategies used by hedge funds often perform well on an absolute return basis in any market. As a result, institutional investors who are disappointed with the
performance of traditional asset classes are now looking to hedge funds to provide diversification, and extra returns on a risk-adjusted basis, to their overall portfolios. However, the
critical question in selecting a hedge fund, or fund of funds, is how to measure and monitor their performance, particularly when comparing non-traditional investment strategies against
traditional stock/bond performance benchmarks is a bit like comparing apples to oranges. In this book, data envelopment analysis is introduced as a superior quantitative approach to selecting a
hedge fund, or a fund of funds, to complement more traditional investment portfolios.
The CD-ROM contains the DEAFrontier software created by Joe Zhu and is an integral part of the book. This powerful software Microsoft Excel Add-In (for versions 97 and
later) allows professionals to analyze hedge funds and CTAs on their own.
