The Hedge Fund Industry has marked favorable growth in recent years. In the year 2017, the Asian Hedge Funds Industry reported as the best performer. It has outperformed the hedge funds of other regions by yielding the return of 15.89% as per Eurekahedge2017 Report. Among these Asian Hedge Funds, India is one of the significant contributors in generating a positive return. It was also observed that among the various investment strategies Long-short equities was highly followed by the investors in 2017. The present study is focusing on in-depth understanding of the concept and the performance of India Hedge Fund (following the Long-Short equities) compared to the market. It considers the return of Eurekahedge India Hedge Fund Index and NIFTY 50 Index for analysis. The data of ten years is obtained which starts from 2008 to 2017. To analyze whether the returns of India focused hedge Funds is superior over the Market, the study considers the use of various models. The Capital Asset Pricing Model is used for the fulfillment of the purpose of the study. It is observed that the hedge funds are exposed to high risk as it tends to move in the same direction as the market moves. Further, Sharpe and Treynor’s ratio are calculated to know the risk-adjusted performance. To confirm the results of the said models, a t-Test is performed with 5% (0.05) significance level.
Volume 11 | Issue 1
Pages: 294-307