Comparing a hedge fund manager to a random version of him or herself is a great alternative to index benchmarking. I introduce my random portfolio generator, show you how it works, and provide the code.
The Markowitz Bullet underlies the best-known and most widely-used portfolio optimization approach. We provide a guided tour using a 3-asset portfolio.
We are featured in a Profit & Loss Magazine Special Report discussing hedge fund performance, along with luminaries Cliff Asness and Bill Lipschutz!
We show how manager diversification improves confidence in predicting future hedge fund returns and can be used as a substitute for demanding long track records.