GLOSSARY
Arbitrage. The simultaneous purchase and sale of a security or pair of similar securities to profit from a pricing discrepancy.
Average gain. The average percentage gain in periods with a positive return.
Average loss. The average percentage loss in periods with a negative return.
Beta. A measure of how much the value of a security or portfolio of securities moves in relation to the average performance of the stock market for a given period of time. In this book, beta is calculated by comparing the price movements of the HFR indices with the S&P 500 index of blue-chip stocks.
Boom-bust sequence. The process by which the value of an instrument or class of instruments is pushed to a valuation extreme, reverses itself, and crashes back ...
Get Investing in Hedge Funds, Revised and Updated Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
