RT Journal Article
SR Electronic
T1 Hedge Fund Diversification
JF The Journal of Alternative Investments
FD Institutional Investor Journals
SP 23
OP 49
DO 10.3905/jai.2002.319062
VO 5
IS 3
A1 François-Serge Lhabitant
A1 Michelle Learned
YR 2002
UL https://pm-research.com/content/5/3/23.abstract
AB There are many benefits to investing in hedge funds, particularly when using a diversified multi-strategy approach. Over recent years, multi-strategy funds of hedge funds have flourished and are now the favorite investment vehicle of institutional investors exploring the world of alternative investments. More recently, funds of hedge funds that specialize within an investment style have also emerged. The authors study the impact of diversification on naively constructed (randomly chosen and equally weighted) hedge fund portfolios. They provide insight into style diversification benefits as well as the inter-temporal evolution of diversification effects on hedge funds.