Date of Award
Moore School of Business
Director of Thesis
The goal of this thesis stated off with one question: are hedge funds worth the fees? This seemed like it would simple to answer, but the measurement of hedge fund performance turned out to be far more complex than one would imagine. The first complexity that became apparent was the bias to overly weight returns as a measure of performance. This is the simplest metric to comprehend and universally can be understood by investors. It seems like common sense that the fund with the highest return would be the best investment opportunity. But this rush to judgment often overlooks other statistics like standard deviation and correlation.
Long, Robert Wesley Jr, "Active vs. Passive Management: The Elusiveness of Alpha to the Modern Hedge Fund" (2017). Senior Theses. 204.