An Analysis of the Hedge Fund Industry

Open Access
Author:
Ahmed, Tariq
Area of Honors:
Finance
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
  • James Alan Miles, Thesis Supervisor
  • James Alan Miles, Honors Advisor
  • Joseph Randall Woolridge, Faculty Reader
Keywords:
  • hedge fund
  • investing
  • finance
  • equity
  • market returns
Abstract:
The hedge fund industry has thrived over the past century. Hedge funds are able to invest in unique ways and utilize various strategies as they attempt to provide investors with superior returns. The process of starting a hedge fund can be a daunting task and involves numerous legal, financial, administrative, and other relevant aspects. This analysis of the hedge fund industry details the process of creating a hedge fund from scratch step-by-step. Additionally, the various strategies that investment funds can choose to employ are outline. Lastly, this study analyzes hedge funds returns and broader equity market returns in order to ascertain whether hedge funds are able to consistently provide market-outperforming returns.