Research and publications
Implicit Options in Hedge Fund Products
This article discusses the option-like exposures of a number of hedge fund strategies based on a review of the literature on the topic. Specifically, recent academic articles have argued that implicit options arise in hedge fund products due to a number of factors. Accordingly, it will briefly cover the investor preferences, risk-transfer function, and manager incentives that lead to the implicit optionality embedded in hedge fund products.
Author(s):
Joseph Eagleeye, Hilary Till
Summary:
This article discusses the option-like exposures of a number of hedge fund strategies based on a review of the literature on the topic. Specifically, recent academic articles have argued that implicit options arise in hedge fund products due to a number of factors. Accordingly, it will briefly cover the investor preferences, risk-transfer function, and manager incentives that lead to the implicit optionality embedded in hedge fund products.
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Register/Log in| Type : | Working paper |
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| Date : | 11/04/2013 |
| Keywords : |
Alternative Investments |
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