Accredited Investor Standard - ANSWER Net worth over $1mm or $200k income over for each of the past two years
Qualified Purchaser Standard - ANSWER Net worth greater than $5mm
HF Investment Attributes - ANSWER (i) low correlation with traditional investments, (ii) long/short positions, and (i...
CAIA Level 1_Hedge Funds Exam Graded A+
Accredited Investor Standard - ANSWER Net worth over $1mm or $200k income over
for each of the past two years
Qualified Purchaser Standard - ANSWER Net worth greater than $5mm
HF Investment Attributes - ANSWER (i) low correlation with traditional investments, (ii)
long/short positions, and (iii) potential for larger returns
Major classifications of HF (5 types) - ANSWER (i) Future Strategies, (ii) Event-Driven,
(iii) Arbitrage/Relative Value, (iv) Equities, and (v) FOF
Futures Strategies - ANSWER (i) Macro and (ii) Managed Futures
Event Driven Strategies - ANSWER (i) Activist, (ii) Merger Arbitrage, (iii) Distressed, and
(iv) Event-driven multi strategy
Relative Value Strategies - ANSWER (i) Convertible, (ii) Volatility, (iii) Fixed Income,
and (iv) Relative Value multi strategy
Equity Hedge Funds - ANSWER (i) Long/short, (ii) Market neutral, (iii) Short selling, and
(iv) 130/30
Optimal Contracting - ANSWER Refers to properly designing the incentive structure so
that the interests of the managers and investors are aligned. Principal-Agency
Relationship in Agency Theory that produces Agency costs.
Incentive Fee Call Option Value Formula - ANSWER
Lock-in Effect - ANSWER Managers take less risk to preserve their incentive fees when
the incentive option is far in the money
Four main HF strategies - ANSWER (i) Directional (systematic exposure), (ii) Event risk,
(iii) Absolute return, and (iv) Diversified Strategies
Opportunistic Hedge Funds - ANSWER Add value through specialization and filling
gaps in existing portfolios - not constrained by tracking errors. Hybrid Hedge Fund are a
subset of opportunistic and fill in the gap between public equities and PE investments
Survivorship and Selection Bias inflate returns by - ANSWER 70-450bps
Managed Futures Vehicles (3 types) - ANSWER (i) Individual managed future accounts,
(ii) Public Commodity Pools, and (iii) Private Commodity Pools
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller millyphilip. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.99. You're not tied to anything after your purchase.
