JOURNAL OF APPLIED BUSINESS AND ECONOMICS
Impact of Hedge Funds on Traditional Investment Products
Author(s): Kaouther Flifel
Citation: Kaouther Flifel, (2014) "Impact of Hedge Funds on Traditional Investment Products," Journal of Applied Business and Economics, Vol. 16, Iss. 3, pp. 35-50
Article Type: Research paper
Publisher: North American Business Press
Abstract:
The purpose of this paper is to present the hedge fund industry in order to demonstrate that their primary
interest in asset management is to diversify a standard portfolio because of their decorrelation with
markets, and this by conducting research on two areas: First of all we will analyze the correlation that
may exist between alternative and traditional investment products. Secondly we generate portfolio
diversification thanks to the dynamic investment model in discrete time combined with the approach for
evaluating the empirical probability. Our results emphasize the importance of the criterion of belonging
to an investment strategy for a hedge fund.