Hedge Funds Explained - Hype or Reality? Hedge Funds Vs Long Only, On average which has performed better?

This book attempts to compare and evaluate the performance of Hedge Funds against Mutual Funds. Financial theory suggests that hedge funds having the ability to use absolute return strategies should posses the potential to outperform the market. Empirical evidence shows that mutual funds are outperformed by the new waves of investment styles such as hedge funds. The book compares twenty of the best performing Equity funds and twenty of the best perfuming Fixed Income funds, against there hedge fund counterparts. The hedge fund strategies are Equity Long/short, and Fixed Income Arbitrage. The performance analysis is over a period of the last five years, from January 2003 to December 2007. The book concludes that most hedge fund strategies produce abnormal returns, and therefore outperform the mutual fund strategies over the five year period.