Sometimes called “Mutual Funds for the Superrich” hedge funds are aggressively managed investment portfolios that attempt to generate high returns through the use of strategies such as leverage, long, short and derivative positions.
Preqin’s Hedge Fund Analyst database provides a comprehensive over view of the hedge fund industry. It includes information on hedge fund performance, profiles, managers, fund items and controls. You can search by individual firm (manager) fund, or create lists of firms or funds with the characteristics you want.
For example, to find the ten largest hedge fund managers ranked by assets under management (AUM) click on Hedge Funds in Preqin’s main menu, then on Fund Managers, and finally on League Tables.
Hedge Funds=>Fund Managers=>League Tables
Click on any fund manager for a detailed report.
When downloaded to EXCEL, the spreadsheet will provide additional details including postal and internet addresses, fund structure, strategies and regional preferences.
In the image above, it can be seen that League Table output can be refined further by:
- Core Strategy
Strategies include “Long/Short”, “Event Driven”, “Relative Value”, and “Activist”. Each of the strategies has several sub strategies. For example, “Long/Short” includes the sub-strategy “Long/Short Equity” (buying undervalued stocks and selling short overvalued stocks”)
- Fund Manager Location
- Types of Funds Managed
In addition to “Hedge Funds”, types include “Fund of Hedge Funds”, and “CTA’s (Commodity Trading Advisor)
To create league tables that include more than 10 firms, or that have highly specialized characteristics, follow this path:
Hedge Funds=>Fund Managers=>Advanced Search
Here you can screen by “Hedge Fund Assets under Management” as well as many specialized fund details (trading and investment methods, industry preference, fund structure, and geographic focus).
The same variables used to screen for fund managers can be used to screen for individual funds. In addition, for individual funds, you can screen by fund performance.
Hedge Funds=>Advanced Search
A key performance measure for funds is return. Possible screens for return in Preqin include return by various time periods, percent of time in which return was either positive or negative, and measures of return volatility. In addition, measures of risk such as Sharpe and Sortino ratios can be used.
Keep in mind that hedge funds have minimal disclosure requirements. In the U.S., for example, hedge funds with 100 million or more in holdings are required to file a quarterly report (13 F-HR) with the SEC that lists their holdings. However, the funds can delay public disclosure of some or all of the information by requesting confidential treatment. The information is released later in SEC Form 13F-HR/A. For the most part, financial information concerning hedge funds is what the funds choose to make available. Of the approximately 17,800 hedge fund listed in Preqin, about 5,800 have performance data.
For a glossary of hedge fund terms, click on:
Support=> Preqin Online Support Documentation
See also Lippincott Library’s Hedge Funds Research Guide.