With the burst of the technology bubble and private equity returns plummeting, it is no surprise that hedge funds have become an important asset class for high net worth individuals and institutional investors alike. Recently, cautious institutions such as CalPERS, a $158 billion pension fund, and General Motors have announced their plans to allocate significant capital into this arena. Of special interest to many institutions are long-short equity strategies. In this article we will examine...

With the burst of the technology bubble and private equity returns plummeting, it is no surprise that hedge funds have become an important asset class for high net worth individuals and institutional investors alike. Recently, cautious institutions such as CalPERS, a $158 billion pension fund, and General Motors have announced their plans to allocate significant capital into this arena.  Of special interest to many institutions are long-short equity strategies. In this article we will...