Hedgefonder under marknadsoro

Sammanfattning: Abstract Title Hedge funds during market instability - An investment alternative for the risk-averse investor? Seminar date 2020-06-04 Course FEKH89, Bachelor's Degree Project in Finance, 15 ECTS Authors Laban Blosse, Gordon Molander Advisor Maria Gårdängen Key words Return, Risk, Hedge Fund, Recession, Risk-averse Purpose The purpose of the study is to investigate and analyze from an investor’s perspective how hedge funds have performed in comparison with market index during the period of 2007-2016, with weight in the decline phase. This is to simplify the decision-making process for the risk-averse investor. Methodology The method is based on the acquisition of quantitative data from Thomson Reuters Eikon. The return history is analyzed and processed using selected theories and models. The measurement period has been divided into a rise and fall phase to create clarity in our results. Theoretical perspectives Relevant theories are applied to calculate hedge funds risk-adjusted returns and other key ratios to perform an analysis with relation to market index. Empirical foundation The empirical foundation consists of return history from a total of 90 hedge funds which can be traded on the british market. Arithmetic and cumulative monthly data is compared with FTSE 100 Total Return Index over the period of 2007-2016. Conclusions The result shows that hedge funds should not be considered as a risk-reducing investment option for the risk-averse investor.