bkballa

Long
Old
Small

I am thinking old, because so many hedge funds disappear in their first few years, that you run a higher risk of picking a bad fund when you select from young ones. Whereas older funds (assuming same managers & process) seem to be stronger by virtue of still being in existence.

I'm not buying maratikus' risk premium theories simply because hedge funds don't price-adjust to compensate for risk the way that stocks do. A 100 million investment is buying the same amount of "fund share" regardless of whether its going into a new or old, large or small fund.


EDIT: I said bankin's risk prem, not maratikus



Edited 1 time(s). Last edit at Thursday, June 3, 2010 at 10:51AM by dlpicket.