Graphic of The Day: Dispersion of Sharpe Ratios In Alternative Mutual Funds

From AlphaCore Capital Today’s graphic comes from AlphaCore Capital LLC, a registered Investment Advisor from La Jolla California, and has been put together by Jonathan Belanger, CFA, the Director of Research. It was intended to show that using average returns is not an appropriate approach to working with alternative investment strategies. Dispersion of Sharpe Ratios […] Read more »

Evaluating Hedge Funds – Alphas, Sharpe Ratios & the Underappreciated Appraisal Ratio

By Peter Hecht, Ph. D., Vice President, Senior Investment Strategist at Evanston Capital Management   EXECUTIVE SUMMARY • Markowitz’s “mean-variance” modern portfolio theory (“MV-MPT”) teaches us to evaluate investments, including hedge funds, in the context of the entire portfolio. Within MV-MPT, investors want to form portfolios with the highest Sharpe Ratio, i.e. maximize expected excess […] Read more »

The Truth About Hedge Fund Risk

Article contributed by Charles T. Hage Need for Truth The hedge fund industry is seriously short on how it treats the subject of risk. The industry has been confusing investors by defining risk poorly and applying it post‐facto to returns. Especially in times when challenging economic and financial conditions call for high standards of professionalism […] Read more »