Portfolio analysis

Evaluating Hedge Fund Portfolio Data and Construction (Part 2)

In Part 1 we looked at how to get portfolio data from 13F filings and started breaking down Fictional Capital Management’s long book. Now we continue with more portfolio metrics and, more importantly, the liquidity analysis that catches the fund manager in a contradiction.

Hedge Fund Portfolio Analysis: Attribution and Fundamentals (Part 1)

Chapter 7 opens with two quotes. One from Bernard Madoff saying he can’t discuss his proprietary strategy, and one from George Soros about how it’s not about being right or wrong, but how much you make when right and how much you lose when wrong. That contrast alone tells you everything about why portfolio analysis matters.

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