This thesis aims to open the Pandora?s Box of Hedge fund styles through an index-based style analysis. This information asymmetry is due to both less strict disclosure requirements and inherent nature of Hedge funds. We employ a multiple unconditional linear regression model wherein 23 Swedish Hedge funds are regressed on 10 style indices. In addition to the increased interest in Hedge funds and their performance drivers, our unique approach with regressing return on return motivates this study.

ABSTRACTTITLE The investors guide to Hedge fund strategies ? A comparing study of Hedge fund strategies on the Swedish market.COURSE Bachelor Thesis in Finance KEYWORDS Hedge funds, Hedge fund strategies, Swedish Hedge fund market, Investors, Average return, Riskadjusted returnThe ThesisInvestor?s general knowledge about Hedge funds and Hedge fund strategies, is compared to other investment alternatives low. The purpose of this thesis is therefore to clarify to investors how examined Hedge fund strategies separate concerning risk and return in Hedge funds. This, in order to facilitate for investors understanding which Hedge fund strategy will be more suitable for them. To achieve this, the thesis is mainly focusing on quantitative data, which is complemented with qualitative findings in terms of a questionnaire.

Hedge funds have the past few years become an increasingly popular investment alternative and in the last decade Hedge fund assets managed have quadrupled to USD 2000 billion, a growth rate of around 25-30% per year. One explanation for this substantial increase is that Hedge funds' minimum limits on capital invested has declined, which have made ??them available to retail investors. The recent turmoil in financial markets has also contributed to investors finding their way to Hedge funds, whose goal is to generate stable returns regardless of how the market develops.Using Sharpe?s, Treynor?s and Jensen's performance measures, I have investigated whether Hedge funds manage to generate higher risk-adjusted returns than traditional managed funds.

Hedge funds? importance within the financial system has during the most recent years increased dramatically. These special funds are unique instruments that differ from traditional mutual funds in a variety of ways, however especially in how they expect returns. Due to the fact that Hedge funds are able to hold short positions they possess the possibility to become market neutral investment vehicles.Because of this possibility to sustain positions neutral to market fluctuations, the concept of absolute returns became a unique selling point for Hedge fund managers and promises of stable returns unchallenged by market conditions was assured. This research paper aims to examine the theory of absolute returns in Hedge funds by examining Hedge funds from the Nordic region during the last years of economic turmoil that has occurred by  analyzing the results from their strategies, partially by quantitative measurements as well as qualitative.  The results show that none of Hedge fund strategies managed to deliver absolute returns over the chosen period..

In this paper Swedish Hedge funds and strategies are discussed and analysed. These new financial forms seem to draw recently a huge attention both in media, press and the academic world. The fact is that Hedge funds have existed already for a long time but it is still known too little about them. After the introduction of Hedge funds, different asset pricing models are discussed including the most basic of all ? CAPM and further Fama and French three factor model as well as the expanding model with conditioning approach.

IASB is currently working with the replacement of IAS 39 Financial Instruments: Recognition and Measurement. The new standard IFRS 9 Financial Instruments is said to be based on principles as opposed to the more rules-based IAS 39. This thesis examines the third phase of the project regarding micro Hedge accounting. The expressed goal from IASB is to provide more useful Hedge accounting information by reducing complexity of the standard. To examine the potential effects of the transition from the rules based IAS 39 to the more principles based IFRS 9, we have performed a case study on a major Swedish bank.

Purpose: The purpose of this study is to examine the difference in return between Swedish and Russian Hedge funds while considering the risk taken.Method: This study is based on quantitative data on funds' historical returns from the electronic database Morningstar.se. Additional data is taken from the funds websites, the Swedish National Bank and Fondbolagens förening.Result and conclusion: All Hedge funds, both the Russian and Swedish performed better thanthe index. The Russian Hedge funds nevertheless performed better than their Swedishcounterparts in all three evaluation methods..

We have in this essay studied the Swedish Hedge Fund Market available for the average Swedish private investor. We have closely looked at the risk measurements that are applicable on the evaluation of Hedge Funds today, and furthermore studied how they are communicated and what they actually contribute with in terms of risk and yield. Our survey attempts to clarify the shortcomings in the communication between the Hedge Fund Managers and their smaller investors. Do they really know where they put their money? The market is rapidly expanding and our goal was to find improved ways to inform about the Hedge Funds risks and opportunities.

The purpose of the thesis has been to explore the use of Hedge fund styles when constructing portfolios of Hedge funds (i.e. funds of Hedge funds). The central question is if the use of Hedge fund styles can significantly explain and improve risk adjusted returns (characterized by Sharpe ratios). The study has been done in collaboration with Optimized Portfolio Management AB who desire further knowledge and evaluation of Hedge fund styles for their fund of Hedge funds.To be able to create successful ex ante portfolios we have explored various prediction models for both risk and return. Our findings indicate that return prediction is problematic using simple models such as regression since the risk exposure of the indices appear to change significantly over time.

This paper aims to investigate the systematic risk exposure of Swedish Hedge funds using a modified Fung & Hsieh (2004) asset-based style factor model. The results show that the average Swedish equity Hedge fund and fund of funds had a significant positive exposure to the equity market portfolio and the spread between small cap and large cap stocks (SMB) during the sample period. This is consistent with our a priori expectations and previous international studies. We do not find the expected systematic fixed-income related risk exposure for the fixed-income Hedge funds and fund of funds in the sample. The empirical material used in this study is taken from a publicly available fund database maintained by the Swedish Financial Supervisory Authority (Finansinspektionen).

Investment in Hedge funds is a relatively new phenomenon for investors compared with other forms of savings. In recent years, the interest has increased among investors in investing their money in Hedge funds, given the protection against declines in the market they are aiming for. Their main purpose is to generate a high return at a low risk regardless of market trends. This they can achieve by having fewer restrictions that offer more flexible investment strategies and freer investment opportunities.The purpose of this paper is to identify how the selected Hedge fund strategies have performed during the recent economic downturn. We also want to clarify the claim that Hedge funds exhibit a positive absolute return regardless of what the market is performing.In order to answer the purpose of the essay and its problems, we have used a quantitative method with a deductive approach in the processing of data.

The purpose of this paper was to examine the inflation hedging capabilities of property shares. A common notion is that property is a good Hedge against inflation. Indeed, positive correlations have been found for direct investments and inflation. However, property shares are generally perceived as a perverse inflation Hedge. This discrepancy has often been quoted as evidence of property shares divergence from the development of the underlying property market.

Purpose: The purpose of this study is to examine whether Hedge funds generate higher risk-adjusted returns than traditional managed funds in Sweden.Methodology: This study was based on quantitative data about the funds historical returns. The funds historical returns were taken from the database Morningstar and the risk-free rate from the Swedish central bank. Random samples of 36 funds have been divided into three portfolios in the form of a Hedge fund portfolio, stock portfolio and mix fund portfolio.Result & Conclusion: The study concluded that the stock portfolio has shown the highest average yield for the study period where all portfolios below market index. Hedge fund portfolio has achieved the highest risk-adjusted return calculated by the portfolios Sharpe Ratio. Of all Hedge strategies, arbitrage had the highest average return and risk-adjusted returns..

Syftet med denna uppsats är att undersöka huruvida Hedge- och aktiefonders avkastning påverkas av samma riskfaktorer. Vidare syftar studien även till att undersöka om Hedgefonders och aktiefonders riskexponering är konstant över tiden eller ej. Slutligen analyseras även Hedgefonders förmåga att förutspå upp och nedgångar på marknaden och därmed generera överavkastning. Det angreppssätt som har använts i undersökningen är av det kvantitativa slaget, där regressionsanalyser har genomförts för att undersöka svenska Hedge- och aktiefonders riskexponering samt svenska Hedgefonders market-timing förmåga. Studien bygger på avkastningsinformation, under tidsperioden 2001-2004, för 20 Hedgefonder och 20 aktiefonder.

The translation of financial records of foreign subsidiaries gives rise to currency translation adjustments that affect total group equity. If unwanted, fluctuations in translation adjustments can be avoided using net investment Hedges. This study aims to find the extent of net investment hedging in Sweden today and in a short historical perspective, and find explanations to varying levels of hedging and firms' decisions to Hedge. Based on annual reports, we determine Swedish firms' net investment hedging policies and their level of hedging. The 32 largest companies listed on the Stockholm stock exchange in the years 1993, 2004, 2006, and 2009 are studied.