This white paper gives an overview to Hedge Funds, with a focus on risk management issues. We define and explain the general characteristics of Hedge Funds, their main investment strategies, risk models employed and address the problems in Hedge Fund modelling. We also survey current Hedge Funds available on the market, those that have been withdrawn and briefly argue the cases supporting and opposing Hedge Fund usage. The purpose of this white paper is to provide an informed analysis of Hedge Funds. This informational analysis will be of value not only to finance professionals but also academics and more generally to any person broadly interested in finance. This paper will be of interest to: * Professionals working within the Financial Risk Management field, in particular: -Hedge Fund and Mutual Fund Managers -Quantitative Analysts -“Front” and “Middle” Office banking functions e.g. Treasury Management * Regulators concerned with Hedge Fund Financial Risk Management * Private and Institutional Investors * Academic Researchers in the area of Financial Risk Management * General Finance community A unique value of this whitepaper, compared to other Hedge Fund literature freely available on the internet, is that this review is fully sourced from academic references (such as peer reviewed journals) and is thus a bona fide study.
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