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Jensen’s Measure

A return measure that differentiates between returns generated through active management and those which simply result from high betas during...

Non-Directional Hedge Fund

A hedge fund that aims to generate a stable return regardless of market performance. In other words, it is designed...

Jensen’s Alpha

A return measure that differentiates between returns generated through active management and those which simply result from high betas during...

Hedge and Forget

A hedge strategy in which an investor makes no attempts to adjust the hedge once its has been set up....

Basis Risk

The danger of loss which is associated with an unexpected widening or narrowing in the basis between the time of...

Fund of Hedge Funds

A fund that invests in a variety of individual hedge funds, typically from 10 to 30 underlying funds. As such,...

Tahawwut

A hedging process/ mechanism that is used or offered by Islamic banks and financial institutions to help mitigate a specific...

Beta Fund

A hedge fund that doesn't hedge, whether partially or fully. A beta fund maintains some exposure to the market without...

BAVAR Ratio

It stands for beta and volatility adjusted return; BAVAR ratio is a risk-return measure that is derived from the Sharpe...

Sterling Ratio

A measure of risk-adjusted return that is designed to apply the maximum drawdown as a measure of risk. This ratio...