How to Use Risk Reports to Assess Manager Skill

How can investors assess performance and monitor risk within their underlying hedge fund investments?

When investors started demanding greater transparency, managers responded with risk reports, which usually comprises a month-end snapshot of a manager’s exposures and a synopsis of return drivers. How can investors assess a manager’s skill with just these data points?

In this paper, we look at the valuable data hidden within monthly-risk reports provided to investors and discover how to assess the manager’s performance.

What's in the report?

  • the essential data investors can take from risk-reports
  • How Style Drift Affects Fund Performance
  • how to look for security selection