Hedge Fund Monitor
Complexity
Complexity may be reflected in the scale and scope of a hedge fund’s operations. Hedge funds generally have significant flexibility in their operational and investment activities. For example, investment positions may include multiple geographies, asset classes, long and short positions, public and private market investments, and over-the-counter (OTC) derivatives that may embed significant leverage or illiquidity. The opaqueness of investment strategies, investment positions, and counterparty relationships make it difficult for regulators and counterparties like prime brokers to fully understand and monitor risk exposures. The higher the complexity, the more difficult, costly, and time consuming it may be to unwind a failed hedge fund’s investment positions under a period of market stress. Measures of complexity include the number of investment strategies, asset classes, investment positions, and geographies within an investment portfolio; and the amount of OTC derivative volume.
Open positions by strategy (equal-weighted average count)
Skip the ChartThe data are aggregated responses to SEC Form PF. Blank or null values are intentional to avoid potential disclosure of proprietary information of individual filers. Only responses from Qualifying Hedge Funds are included. See additional definitions and methodology on the SEC Form PF Data Sets page of the Hedge Fund Monitor.
The average number of open positions is based on SEC Form PF question 34. SEC Form PF question 20 lists several investment strategies, and funds self-report their share of net assets managed under each strategy. We map reported strategies into one of eight broad strategies. Fund of funds are not shown in this chart.
Series Used
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Suggested CitationOffice of Financial Research, "Hedge Fund Monitor," refreshed monthly and quarterly, https://www.financialresearch.gov/hedge-fund-monitor/ (accessed ).