CHAPTER 13 Multi-Strategy Hedge Funds

A multi-strategy hedge fund utilizes multiple investment strategies simultaneously in order to add a layer of diversification and capture opportunities across multiple different investment products. Multi-strategy hedge funds allocate investor capital across a number of different hedge fund strategies in order to generate returns while reducing single-strategy exposure and often minimizing other risks like sector or industry risks.

The goal of a multi-strategy hedge fund is to produce robust risk-adjusted returns in all market conditions across many asset classes. Generally, multi-strategy hedge funds generate returns that are uncorrelated to standard benchmarks as well as the hedge fund community as a ...

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