From The Point Of View Of The Revenue Sources Of Hedge Fund Investment Options

With the cancellation of the limitations on capital flows between countries and the loosening of supervision on countries' capital markets, the global industry of hedge fund is developing quickly. With the development and improvement of China's capital market, there are more and more investment and financing vehicles, which creates best climate for hedge fund. We can expect that in the near future hedge fund will show up in our country's capital market as an alternative investment, and that more and more investors will use this kind of investment vehicle. Most of Chinese investors are unfamiliar with hedge fund. When investors are choosing among different types of hedge funds, their experiences and skills in investment evaluation are not enough. If they make decisions imprudently, it is probable that they will make big loss. Therefore, we need understand and know how to take advantage of it in the right way.The thesis researches on how investors choose between many types of hedge funds, by making use of past returns of hedge funds. The contents can be divided into five chapters. In the first chapter, the writer illustrates the basic theories and previous research achievements. In the second chapter, the writer introduces hedge funds' history, status and main characteristics, and compares their returns with that of mutual funds. In the third chapter, the writer introduces asset-based hedge fund style factors model, and explains the sources of returns of hedge funds by the model. Then the writer analyzes the two main sources and illustrates the selection benchmarks respectively. In the fourth chapter the writer discusses the supervisions on hedge fund and its future in Chinese market. In the last chapter the writer draws conclusions.