NEWS

University College Cork Professors Ciara Connolly and Mark C. Hutchinson ( “Dedicated Short Bias Hedge Funds – Just a One Trick Pony?” ) looked at dedicated short bias (DSB) funds during the financial market unrest during 2007-2008. They found that “DSB hedge funds are indeed more than a one trick pony. They are a significant source of diversification for investors and produce statistically significant levels of alpha.

“[I]f correctly incorporated into investors’ portfolio of assets, the unique nature of DSB hedge funds, their ability to produce alpha and their unique statistical characteristics could be exploited to improve the returns of investors’ overall portfolios.”