The ABCs of hedge funds: Alphas, betas, and costs

Roger G. Ibbotson, Peng Chen, Kevin X. Zhu

Research output: Contribution to journalArticlepeer-review

45 Citations (Scopus)

Abstract

The authors decomposed their estimated pre-fee 1995-2009 hedge fund return of 11.13 percent into fees (3.43 percent), an alpha (3.00 percent), and a beta (4.70 percent). The year-by-year results show that alphas were positive during every year of the past decade, even during the recent financial crisis.

Original languageEnglish
Pages (from-to)15-25
Number of pages11
JournalFinancial Analysts Journal
Volume67
Issue number1
DOIs
Publication statusPublished - Jan 2011
Externally publishedYes

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