market folly

Below you will find Credit Suisse's latest monthly report on the hedge fund industry. This report is a bit different than other documents we post here at Market Folly because it is more-so focused on the industry in general as it details sections on the investor's perspective, risk management, and various marketing strategies hedge funds are using. This report is unique in that it also has an operational look at things and should be useful for those in the alternative investment space.

An interesting fact: event-driven is now the most sought after hedge fund strategy by investors, displacing global macro. In terms of long/short funds, Credit Suisse found that for every $100 of equity, various l/s hedgies have long exposure of $125 and short exposure of $87. This falls in line with what we've seen previously regarding hedge fund exposure levels.

Embedded below is Credit Suisse's monthly hedge fund industry report:



You can directly download the .pdf here.

For more great research on the hedge fund industry, we highly recommend checking out Goldman Sachs' look at the top hedge fund long & short positions. Additionally, head to our post on how hedgies have their shortest position ever against the euro.