The performance of Asian Hedge Funds

This paper focus on the correlation between major macro indicators and the Asian hedge funds performance. The author introduces a Vector Auto regression model to find this correlation and proposes a method to forecast the hedge fund return. It is found that the government Treasury bill interest rate...

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Main Author: Shi, Wenjie
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2017
Online Access:https://eprints.nottingham.ac.uk/45940/
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author Shi, Wenjie
author_facet Shi, Wenjie
author_sort Shi, Wenjie
building Nottingham Research Data Repository
collection Online Access
description This paper focus on the correlation between major macro indicators and the Asian hedge funds performance. The author introduces a Vector Auto regression model to find this correlation and proposes a method to forecast the hedge fund return. It is found that the government Treasury bill interest rate has the largest influence on the return, even bigger than the money market rate. Exchange rate has an insignificant correlation with the return, while the sign of the coefficient meets the expectation. When money market rate, Treasury bill rate and exchange rate increases, the return for the hedge funds decreases. However, the actuation duration is different among the three indicators. Money market rate takes two months. Treasury bill rate takes one month, and exchange rate takes five months. Moreover, both three macro indicators are good for forecasting the hedge funds performance under the Vector Auto regression model. Finally, policy implication and discussion are given.
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spelling nottingham-459402018-04-17T15:12:40Z https://eprints.nottingham.ac.uk/45940/ The performance of Asian Hedge Funds Shi, Wenjie This paper focus on the correlation between major macro indicators and the Asian hedge funds performance. The author introduces a Vector Auto regression model to find this correlation and proposes a method to forecast the hedge fund return. It is found that the government Treasury bill interest rate has the largest influence on the return, even bigger than the money market rate. Exchange rate has an insignificant correlation with the return, while the sign of the coefficient meets the expectation. When money market rate, Treasury bill rate and exchange rate increases, the return for the hedge funds decreases. However, the actuation duration is different among the three indicators. Money market rate takes two months. Treasury bill rate takes one month, and exchange rate takes five months. Moreover, both three macro indicators are good for forecasting the hedge funds performance under the Vector Auto regression model. Finally, policy implication and discussion are given. 2017-09-13 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/45940/1/Dissertation%20of%20Wenjie%20Shi.pdf Shi, Wenjie (2017) The performance of Asian Hedge Funds. [Dissertation (University of Nottingham only)]
spellingShingle Shi, Wenjie
The performance of Asian Hedge Funds
title The performance of Asian Hedge Funds
title_full The performance of Asian Hedge Funds
title_fullStr The performance of Asian Hedge Funds
title_full_unstemmed The performance of Asian Hedge Funds
title_short The performance of Asian Hedge Funds
title_sort performance of asian hedge funds
url https://eprints.nottingham.ac.uk/45940/