Hedge Fund Performance During and After the Financial Crisis

The current research was done using the Hedge Index data base of over 9500 funds. These data agglomerated the performances of many individual hedge funds within the 9500 fund base and classified them by strategy. This raised the issue of caution in generalising results. Within each strategy, there are Managers who are better-performing or worse-performing than the average performer in that strategy. Again, with globalisation on the increase every year, it can be expected that correlations between markets will increase. So, it would be useful to micro-analyse individual hedge fund performances for more insights into what contributed to their particular performance. Analysis of hedge fund performance in different crisis scenarios, like the crisis in 1929 or the Asian crisis in 1997, also helps. By comparing the results in each crisis, it would be possible to find patterns and filter out strategies that can offer superior performance, in each crisis scenario. Furthermore, simulations for possible future crisis scenarios could be made to investigate how the strategies would perform. This is important, since past performance might not be a good indicator for future performance, especially in turbulent crisis scenarios.