Hedge Funds versus Hedged Mutual Funds: <i>An Examination of Equity Long/Short Funds</i>

McCarthy, David

doi:10.3905/jai.2013.16.3.006

Cited by 11 publications

(2 citation statements)

References 4 publications

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“…As of June 2014, trailing one-year returns for the two groups remained within 1% of each other for eight consecutive months, suggesting that performance differentials only continue to tighten. As noted by McCarthy [2014], despite perceived leverage restrictions applicable to mutual funds, exposures between mutual funds and hedge funds are generally similar at the aggregate level. McCarthy concluded that, "To the original question, then, of whether equity long/short mutual funds are reasonable substitutes for equity long/short hedge funds, the answer seems to be that they are.…”

Section: Long/short Equity As a Leading Examplementioning

confidence: 88%

Overcoming Misconceptions about Liquid Alternatives

Maxey¹,

Davis²

2014

JAI

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Section: Long/short Equity As a Leading Examplementioning

confidence: 88%

Overcoming Misconceptions about Liquid Alternatives

Maxey¹,

Davis²

2014

JAI

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“…A study by McCarthy (2013. p39), dedicated to the assessment of hedge fund strategies found that the LSE strategy approximately accounts for 25% of the hedge fund research performance index. Whilst this strategy is widely adopted in hedge fund trading, mutual funds have recently joined in on the bandwagon of utilising these LSE strategies (McCarthy, 2013). Although LSE strategies can increase a core portfolio's return profile and reduce pullbacks if stocks lose momentum, there is still room for improvement.…”

Section: Long/short Equity Strategiesmentioning

confidence: 99%

The Impact of Covid-19 on the Performance of Hedge Funds Compared to Mutual Funds in South Africa

Muridili

Sgammini

Ferreira-Schenk

et al. 2022

IJEFI

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Investors are constantly searching for methods to generate value above passive investment techniques. Therefore, analysing the performance of hedge funds as compared to mutual funds, particularly in the wake of Covid-19, can aid investors in their investment decision-making process. Those investors who desire above-average returns, particularly in volatile market conditions place an expectation on hedge funds to be able to achieve higher performance during economic downturns, given that they are designed to mitigate risk and to take advantage of harsh financial market conditions. Monthly, secondary data were collected from 30 September 2018 to 31 August 2021 to analyse and compare the risk-adjusted performance of five hedge funds and five mutual funds in South Africa. Both hedge and mutual funds indicated higher risk-adjusted returns from the pre-Covid-19 period compared to during the pandemic. Hedge funds were found to have higher risk-adjusted returns than mutual funds during the Covid-19 period. The novelty of these results indicated that hedge fund managers can achieve higher returns for investors during extreme market events.

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Puzzle solved? A comprehensive analysis of hedge fund-like mutual funds according to the value-added paradigm

Light

Stetsyuk

2022

J Asset Manag

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Hedge Funds versus Hedged Mutual Funds: An Examination of Equity Long/Short Funds

Cited by 11 publications

References 4 publications

Overcoming Misconceptions about Liquid Alternatives

Overcoming Misconceptions about Liquid Alternatives

The Impact of Covid-19 on the Performance of Hedge Funds Compared to Mutual Funds in South Africa

Puzzle solved? A comprehensive analysis of hedge fund-like mutual funds according to the value-added paradigm

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