Hedge Funds
The construction of hedge fund portfolios by institutional investors around the world has been a combination of both science and art over the years. While some use a strict quantitative methodology like Risk Budgeting and/or Sharpe Parity along with a correlation matrix among different hedge fund strategies to create a portfolio, others use more ambiguous, discretionary and qualitative factors like the in-house view on an asset class or geography (or both) to do so.

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