With the bull market of the 90's now only a distant memory, investors have turned to hedge funds as an alternative source of equity-like returns. Billions of dollars flow into hedge funds and funds of hedge funds each year hoping to achieve absolute returns with acceptable levels of risk. Unfortunately, investment advisors are learning, sometimes with disastrous results, that hedge fund investing is not as easy as it first appears. As a result, some have incorrectly concluded and without sufficient foundation, that hedge funds are not acceptable investments for their clients. They base their opinion on skepticism, actual experiences and/or high profile failures and frauds. Despite the anecdotal evidence, however, investments continue to flow into hedge funds at an ever-increasing rate. Are hedge funds an acceptable investment class asset? What exactly is a hedge fund? What are the real expected returns and risks associated with hedge funds?

The directors of PARADIGM Global Advisors, LLC have been designing portfolios of hedge funds for over ten years. PARADIGM's expertise stems from continuous research that originated at Columbia Business School. Professors such as William Goetzmann, Frank Edwards, Jeremy Staum and James Park have explored the answers to fundamental questions about hedge funds. These academic theorists, together with hedge fund practitioners at PARADIGM, have modeled, researched and tested the answers to basic questions for over a decade and have produced a unique working model of the hedge fund phenomena that serves as an important guide to hedge fund investing.

This website contains an introduction to this model and PARADIGM's approach to hedge fund investing. We call it "Modern Portfolio Theory and Its Application to Hedge Funds."

Past performance is not necessarily indicative of future results.