Evaluating the Impact of Information on Hedge Fund Trading Strategies

This analysis is centered on understanding how various types of information, both public and private, influence hedge fund trading methodologies. The focus is to dissect the relationship between information sources and trading performance in the dynamic world of hedge funds.

• Ÿ Detailed Hedge Fund Sample Analysis: I examine a representative sample of five hedge fund trading indices, collected from the HFRI database, covering the period from 1990 to 2015. This extensive dataset provides a solid foundation for analyzing trends and patterns over a significant timeframe.
• Ÿ Robust Risk-Adjustment Techniques: My approach involves applying both unconditional and conditional risk-adjustment procedures. These methodologies are critical in isolating the effects of information on fund performance, ensuring that our findings are robust and reliable.
• Ÿ Differential Impacts of Information Sources: Results from the conditional models reveal that different sources of information have varying impacts on hedge fund trading strategies. This suggests that the efficacy of certain trading approaches is closely tied to the nature and quality of information utilized.