The Empirical Research Of Domestic Hedge Funds And The Construction Of Fund Of Hedge Funds (FOF) Portfolios

In recent years, hedge funds have become more and more mature in thefinancial world. Although they are new in China, hedge funds are developingquickly as the growth of China’s financial market. This thesis analyzeddomestic hedge funds and showed that it is necessary to build funds of hedgefunds (FOF) in China. Based on our fund research framework, we selectedfour long-only private equity funds and three hedge funds as a portfolio.From simulation results, our FOF portfolio outperformed, had high reward-to-variability ratios, and served our purpose of setting funds of hedge fundsquite well.