Wednesday, 29 March 2017
Last updated 3 hours ago
Mar 26 2007 | 1:45pm ET
Listen up newbie hedge fund investors! New research from software provider PerTrac Financial Solutions has confirmed what is widely believed in the hedge fund industry: Emerging hedge funds perform better than older and larger funds.
According to Meredith Jones, a managing director at PerTrac, the study reveals that emerging and more volatile hedge funds tend to generate greater monthly returns than older and larger hedge funds. Specifically, hedge funds less than two years old have average returns of 17.5% a year, while those older than four year return on average 11.84%.
"The study is useful to investors because it provides some broad guidelines on which funds are more likely to match their desired return/risk profile,” said Jones.
“While the information from this study can help investors know where to begin their search, they need to consider a number of factors when selecting a specific fund for investment."
Data was compiled and analyzed using the PerTrac Analytical Platform software application. Two different analyses were done; one based on fund asset size, and another on fund age.