Alternative Investment Management Association Representing the global hedge fund industry
28 April 2014
The Alternative Investment Management Association (AIMA), the global hedge fund industry association, has published a new educational guide to understanding hedge fund performance.
The guide, ‘Apples and apples: How to better understand hedge fund performance’, says comparing hedge fund performance to the S&P 500 can be an “apples and oranges” comparison. It proposes five steps to improve understanding of hedge fund performance:
Jack Inglis, AIMA’s CEO, said: “It is striking that recent surveys have highlighted high levels of investor satisfaction in hedge funds at a time when many commentators have claimed that the industry is being out-performed by the ‘market’. The reason for this is that investors are not allocating to hedge funds to beat the S&P 500 but to allow them to meet their asset-liability management objectives in terms of risk-adjusted returns, diversification, lower correlations, lower volatility and downside protection.
“Put simply, many investors value getting steadier returns with lower volatility over higher returns with much greater volatility. Hedge funds actually have lower volatility not only than equities but also bonds. What that means is that in terms of the risk taken, ie in risk-adjusted terms, the industry continues to out-perform.”
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Note to editors
To download ‘Apples and apples - How to better understand hedge fund performance’ click here: www.aima.org/download.cfm/docid/4FD1E0A5-E66F-46A9-956F3A983ECB518F
For media enquiries, please contact:
Christen Thomson, AIMA’s Head of External Affairs
Tel: +44 (0)20 7822 8380
As the global hedge fund association, the Alternative Investment Management Association (AIMA) has over 1,400 corporate members (with over 7,000 individual contacts) worldwide, based in over 50 countries. Members include hedge fund managers, fund of hedge funds managers, prime brokers, legal and accounting firms, investors, fund administrators and independent fund directors. AIMA’s manager members manage a combined $1.5 trillion in assets (as of March 2014).
All AIMA members benefit from AIMA’s active influence in policy development, its leadership in industry initiatives, including education and sound practice manuals, and its excellent reputation with regulators worldwide.
AIMA is a dynamic organisation that reflects its members’ interests and provides them with a vibrant global network. AIMA is committed to developing industry skills and education standards and is a co-founder of the Chartered Alternative Investment Analyst designation (CAIA) – the industry’s first and only specialised educational standard for alternative investment specialists. For further information, please visit AIMA’s website, www.aima.org.