Why Analyze Hedge Funds with PMVD?
The Case Study
A case study is presented here in order to illustrate the potential value of returns-based analysis using PMVD. This study is based on 75 months of performance data for a hedge fund. The analysis was performed for a potential Prism client without knowing the identity or strategy of the fund.
All the techniques described in this overview are employed to to assess their relative merit and to try to learn as much as possible about the fund.
The next page presents a rolling window style analysis using hedge fund benchmarks. It also explains how to read rolling window charts.
Larger and more readable versions of all the charts in this example may be viewed by clicking on the charts embedded in the page.
Copyright © 2006 Prism Analytics