International Marketplace Essays - Offshoring, Canada, Free Essays

International Marketplace Essays - Offshoring, Canada, Free Essays International Marketplace Jason Racki English 123 Ms. Gigliotti Term paper The Everyday Effects of the International Marketplace American is increasingly connected to the rest of theworld as a global economy becomes more important. We participate in the international marketplace both as providers of goods and as consumers. How we buy and sell affects us both in terms of what goods we can choose from, but also what jobs are available, and what kinds of industries will come to dominate our economy. One of the most important changes in recent years in our place in the global economy is the dropping of trade barriers with such political moves as the approval of the North American Free Trade Agreement (NAFTA). This has had an impact on our economy which has filtered down to the everyday lives of our people, both as workers and as consumers. On the one hand, NAFTA has been good in that it has caused the dropping of tariffs by Mexico and Canada, making U. S. goods more affordable in those countries. This has helped to stimulate some areas of the American economy by opening up new markets to sell our products abroad. In urging the passage of NAFTA, the Clinton Administration publications said that NAFTA would increase high wage jobs, boost U.S. growth, and expand the base from which U.S. firms and workers could compete in a world-wide market. It predicted job gains of approximately a million due to increased Mexican exports, and suggested that by 1995 there would be approximately 200,000 more high wage jobs created due to the opening of free markets. The industries most expected to benefit were those dealing in computer technology, machine tools, aerospace equipment, telecommunications equipment, electronics, and medical devices all areas where wages were already 12 per cent higher than the national average (Expanding (1993), 3-5). Such growth in jobs would have an effect on the workers and their communities, giving a boost to both individual wealth and the community itself. These benefits spread outward to other areas of the economy, helping people who have jobs in retail, construction, and oth er areas where workers spend their paychecks. However, there is another effect. As a result of the cheaper labor in Mexico, participation in this part of the international marketplace has led to the loss of many American jobs in certain industries, such as the garment and textile industries. After four years of stability, apparel industry jobs plunged suddenly last year, falling more than ten percent from 945,000 at the end of 1994 to 346,000 in 1995. In addition, 42,000 jobs vanished in the fabrics industry for at total shrinkage of 141,000 jobs. These jobs represented 40 percent of all manufacturing jobs lost in the United States last year (Squeezing (1996), D1). Carl Priestland, an economist for the American Apparel Manufacturers Association, predicted that this year another America will likely lose up to another 50,000 jobs in the industry (Squeezing (1996), D1). These losses especially affect workers in small towns like Pisgah, Alabama, and Granger, Texas. The approximate 100 people let go in Pisgah this year were emotionally devastated. Not only are they seeing their specific jobs disappear, they are also faced with seeing the entire industry vanish from their area, taking their opportunities with it. One example, Martha Smith, who lost her job sewing children's clothes, is now enrolled in a state-sponsored program to learn clerical skills. She is thereby trading a blue-collar position for one which is in a low-paying and overcrowded field. In fact a great many of the over 650 people who lost sewing jobs in Alabama this year are women struggling to support their families (Squeezing (1996), D1). They face a market where they have few skills and little to offer. Given the largely female makeup of the sewing industry, it is unfeasible to try to fit all these displaced workers in the clerical field. And on top of that, when a plant such as the one in Pisgah closes, the entire town and region suffer. Many such towns are dependent on one employer. When that employer leaves for cheaper labor in Mexico, the local economy cannot easily recover. Local merchants lose their customer base; suppliers to the mills lose their markets. In the textile

Applying Kambons Theory

Applying Kambons Theory Free Online Research Papers I begin this paper with the beginnings of the life of the person that I am evaluating. The person in question is a twenty one year old lesbian African American woman. This Woman was born in Jacksonville, Florida. She lives a stable life with her siblings and loved ones at her side. Although the first few years of her life were as she would describe it â€Å"very complicated†. For the first 18 years of her life she lived in Poverty. She and her brother and sister (whom are both older than her) were not only in the system for years but they were abused and neglected. The abuse and neglect she endured was not only from her biological parents who abused drugs also but from foster parents who swore to love and care for her whilst she was out of a home and needed love and caring the most, and also from her adoptive parents who treated her and her biological brother for the most part as if they were their own personal slaves, while letting their blood related adoptive children free of the burden of any chores. Sexual abuse has also played a major part in this woman’s life for years now, not only from men but from women too. This woman was taken from her parents at the age of two due to the neglect and abuses she and her siblings endured. The woman was what is known as a â€Å"crack baby†. Crack baby is a term for a child born to a mother who used crack cocaine during her pregnancy. Although there has been disputes about the effects of crack cocaine on the fetus, nothing has been proven showing that the effects of crack cocaine will hin der the fetus from being able to grow and have a normal life. There have been accounts where some fetus’s faced mental retardation and cerebral palsy but it has not been proven that crack cocaine was the cause due to the fact that most mothers’s who use crack cocaine during pregnancy also smokes cigarettes. There is only increased risks for birth defects nothing has yet been proven fact. As a matter of fact, the woman is now a college student well on her way to graduation but she never thought that she would make it quite that far. Her parents for sure did not. Neither of her parents completed high School. They have both been incarcerated countless times on drug and theft charges. Her mother tried to make something of herself but continued to get pulled back into the addiction of crack cocaine along with the woman’s father. As of now her biological mother is a pathological liar and continues to try and gain attention by faking sick which indicates a factitious disorder (Nolen-Hoeksema, 2007). The woman’s biological father still continues to do everything he possible can to acquire crack cocaine. The woman’s adoptive mother went as far as to complete high school and one year of community college. The woman’s adoptive father did not complete high school and seems to her to have â€Å"A mental problem†. None of the parents in her life have jobs, and when they do get them they cannot keep them for more than a few months. The woman does however believe that the crack use and the abuse by the one’s whom she believed would care for her have had a negative impact on her life. The woman seems to have a problem with being around people. She seems very shy and out of place in large groups or crowds. She is afraid to talk to people for fear of embarrassment. This indicates she has a social phobia (Nolen-Hoeksema, 2007). Although the woman is very smart and has made good grades since she began attending school she does not seem to be interested in school at all. She says that she has no plan for her life. She just does not want to do anything. When I asked the woman what career she sees herself being good at she claimed that she does not think she is â€Å"cut out† for any career. She chose social work as a profession to study at Florida Agricultural and Mechanical University because she believes that it was the right thing for her to do. She feels that she may be able to help other people who were in the same situation as her but she is just not sure about any of it. When she has to do projects in school or has to publicly speak she tends to have pan ic attacks, which I believe indicates an anxiety or panic disorder (Nolen-Hoeksema, 2007). She does not seem to be able to deal with stressful situations well. If it seems that something is overwhelming her she cannot seem to keep her attitude in check. She tends to lose it at the spur of the moment times. It seems to me as though she may have a bit of a bipolar complex (Nolen-Hoeksema, 2007). The woman does not have many friends. She believes that she does not really need to be around too many people or trust too many people because they will only end up hurting her anyways. The woman also has problems with coping with most all of her feelings. Almost everything she feels seems to come off as anger to the people around her. She does not seem to know how to express her feelings in a healthy way. Anger is the most prominent feeling she tends to show. The woman tries to hide her emotions from those around her. She does not want to â€Å"put her burdens off on others†. She tend s to keep things bottled up inside her until she explodes on those around her. She has taken anger management classes but she says that they only worked for so long. I feel that she is a very nice person. She loves and cares about everyone around her even strangers. She tends to want to help the homeless and any other people she sees that are in distress. Sometimes she is extremely happy and then other times she is sad and depressed and when asked why she cannot give a reason. This may also indicate symptoms of bipolar disorder (Nolen-Hoeksema, 2007). This woman does see the need to help her family make their way to the top. No matter what they have done to her if they ask her for help she does whatever it is that she can to make sure that they are ok. No matter what the consequence may be. She wants her family/group to survive (Kambon 1992). She feels that now that she is on a higher level of life so it is the least she can do to help those who need it. If this woman were to take a test on the ASC scale (Kambon 1992) I believe she would not score very high at all. The home life she describes shows that she has not had much involvement with African culture. She grew up in a small town that was predominantly white. She attended both elementary and high schools that had only a few African American students in attendance. The home in which she grew up did not have many neighbors. She lived in a very rural area for the most part of her life. She has become accustomed to the norms and values of European people (Kambon 1992). Also the way in which she was treated at home made her not want to adhere to the African culture. Her adoptive mother would beat them with extension cords when she felt necessary. She would make them work out in the field in the hot sun for hours during the day. She was not given much of anything. Her adoptive mother was raised in Georgia during the 1930’s which was predominantly racist. She believes that her mother learned the ways to treat her and her brother from white supremacy people who treated her adoptive mother and her family that way. Therefore she wants nothing to do with the pattern of how African Americans seemed to have learned from the white supremacists how to beat and discipline their own young and others around them. As far as her sense of spirituality goes she is a very spiritual person. She does not attend church at the moment but she had attended a few black churches in her past. She does have that sense of ASC. She does identify with nature and the spir it world and believes everything is connected to a higher being (Kambon 1992). I would say her personality is a mixture. She does in some part identify with African Personality as she has experienced racism, she cares to help her family therefore looking out for the group showing her sense of groupness (Kambon 1992), but she is not fully into her African personality as all African American children should be. Therefore she does not have a strong sense of African Self Consciousness, but she does however have some sense of it. She has grown up and experienced the white world first hand. She was taught by white teachers and those who have already been corrupted by white supremacy. Now that she is older however she has been getting deeper into her African Heritage. When she does find the courage to hang around people they tend to be African American. She is now attending a Historically Black College and maybe someday she will find a way back to her African roots and then will be able to score high on the ASC scale. Maybe she will be able to teach her children in the future to be of pure African nature and no longer be culturally misoriented (Kambon 1992). But as of right now I believe that she is in between, she is a mix of Eurocentric and African culture. Research Papers on Applying Kambon's TheoryPersonal Experience with Teen PregnancyMind TravelHip-Hop is ArtThe Relationship Between Delinquency and Drug UseStandardized TestingThe Effects of Illegal ImmigrationGenetic EngineeringCapital PunishmentAnalysis Of A Cosmetics AdvertisementBook Review on The Autobiography of Malcolm X

PERSONAL STATEMENTS FOR TEACHER TRAINING APPLICATION Statement

STATEMENTS FOR TEACHER TRAINING APPLICATION - Personal Statement Example I was initially enthused to pursue teaching in my work experience at XXXX, after completing my A†levels. I was guided by an enthusing primary school teacher who totally included me in helping the children with their writing and reading skills along with Mathematics. Since November 2013, I have volunteered three days every week at YYYY, which has made me more experienced in classroom†based teaching. I usually work together with the class teacher in organizing the class for activities, listening while children read, along with supporting pupils of lower ability. This made me understand the significance of differentiation in planning a lesson and how it is should be run. I have taken part in coming up with Individual Educational Plans (IEP) for pupils encouraging them to learn and personally structuring their learning as per their explicit needs. Moreover, I am extending my various teaching methods like listening exercises, starters, poster making, games, debates, quizzes, and workbooks. To inspire pupils in their learning I have invented some games as well as assessment sheets together with preparing my individual lessons. This year I am overseeing a pupil with Aspergers syndrome during break and lunch times. This chance has been rewarding, helping me to attain a wider perspective on primary school experiences, provide additional support as well as learn new behaviour management techniques. I am through with a two†week experience at this school in June 2014 where I got experience in Key Stage 1 and 2 classroom for two weeks. This enabled me to interact with as well as support children in a diverse range of abilities, lessons, as well as activities and provide them with suitable feedback including targets and rewards. I feel that my degree in history would be appropriate. It is not just an academically hard subject but it assisted me to develop several transferable skills such as the ability to construe and clarify intricate information,

Race, Politics, and Reconstruction, 1865-1875 Assignment

Race, Politics, and Reconstruction, 1865-1875 - Assignment Example Thompson worked at the radical end of the party. He was against the conservative compromises involved. He wanted the national government to reject it because it was coated with ethnicity and discrimination. Ruby was the first Black to be chosen into the state council. This became possible only because fewer Whites contested in the elections than Blacks. George ensured all races were treated with equivalence. He advocated for the fortification of civil constitutional rights of the Blacks. As the president of Texas Colored Labor Convention, he was able to assemble Republican electors in Texas. George built a foundation for black power and governances in Galveston. He cleverly advocated for their civil and party-political civil liberties. He worked cautiously with the hostile White politicians. This way, he opened more occasions for the Blacks through â€Å"compromise† politics. In the post-civil war period, Thompson had significant political power (Rabinowitz 265). He had to ensure he gratified both his goals and that of the wider social order. Through his political dispositions, Ruby compromised to ensure that his race was at least prosperous. In his efforts to safeguard the welfares of the Blacks, Ruby made some compromises in the aim of satiating later goals. In 1874, the Democrats efficaciously reclaimed power. He did not seek re-election because the Whites were prevalent in the assembly. The White politicians exhaled hostility, and Ruby had to tread carefully to guarantee his interest, and that of the Black community received the preferred

Forensic nursing Term Paper Example | Topics and Well Written Essays - 1500 words

Forensic nursing - Term Paper Example According to the American Academy of Forensic sciences (AAFS) forensic nursing is â€Å"the application of forensic aspects of health care combined with the bio/psycho/social/spiritual education of the registered nurse in the scientific investigation of trauma and or death† (Hammer and Pagliario, 2006). In the past, forensic medical interventions (including lifesaving interventions) were withheld until a Forensic medical examiner (FME) has arrived at the emergency department and had collected evidence (Pyrek, 2006 ). In fact, clients were even transferred to other cities that offered forensic clinical services; moreover, there was not much intervention that could be provided in order to protect forensic evidence ( Pyrek, 2006). When a Forensic Nurse Examiner (FNE) is available at the clinical site, they are able to secure the important forensic evidence requiring timely recovery and preservation without withholding medical interventions ( Pyrek. 2006). In 1991, the American Society of Forensic Nurses was the first to recognize and accept Forensic Nursing as a specialty (Bader and Gabriel, 2009 ). The following year , 72 primary sexual assault nurse examiners formed the International Association of Forensic Nurses (IAFN) (International Association of Forensic Nurses, 2006). The aim of the IAFN promoted the education of forensic nurses; thus, the Forensic Nursing Code of Ethics and the Scope and Standards of Nursing Practice was developed in 1997(Bader and Gabriel, 2009). Forensic Nursing is a specialty that is still in its infancy, thus it needs to continuously grow to provide an appropriate response in trauma cases, provide a more holistic care to their clients, and create advocacy for their patients in an unbiased , scientific, and objective manner. In the past many of these roles have been carried out by emergency nurses who may not be

Feminism Philosophy Essay Example for Free

Feminism Philosophy Essay At the onset, Valerie Solana’s SCUM Manifesto is a work that was clearly addressed to male species which she regarded as accidental a â€Å"biological accident. † The first two paragraphs of her work reveal her deep resentment on the role of men and women in the society. The last part of the first paragraph reflects her strong rejection of the male sex. Solanas identifies male in various ways but all describing the male as an undesirable species. To her, to be male is something that a man should be ashamed of and maleness is a dearth, a disease and that males are emotionally limited. She said male is completely an â€Å"isolated unit† and everything that he has in himself is nothing but a tool that he use to fulfill his drives and needs. Her work also reflect a seemingly an almost bitter feeling towards men. She used strong and very offending sentences emphasizing on the males’ purportedly many in capabilities including relationship except of his physical sensation. However, the male according to her is capable Solano’s obvious hatred to the male sex was also expressed in the way she describes how a male expresses himself. She described the male’s behavior as physically passive but then he does not like it. He expressed his frustration of his own passivity by screwing a woman he despises. She said the male project his passivity by projecting it onto women and by screwing. Overall, Valerie Solano’s work was an expression of her sentiments on the role between the male and the female in which she downgraded the role of the male species as concerns only of him self, but she gratifies women for her unselfish role. Solano stated that while mother cares for what is best for her children, the father only wants what is best for him. She was a man hater. In contrast with the work of Solano, Fry’s work is more objective although she also urges that women should detach themselves from the world of males and male dominated institution. This separation according to Fry is of various sorts which must includes institutions, relationships, roles and activities that are male dominated. Fry’s work reflects a more meaningful feminist opinion as she discussed important feminist issues leading to their objective of achieving liberation from the male dominance world. While Solano strongly reject the male describing him as incapable, emotionally weak, a disease, and so forth all maligning the male sex, Fry was more objective in a sense that she also put her feet on the other’s shoes. Though a real feminist and also a staunch advocate of the separation from male dominance, she described women’s role in the context of the traditional notion that men are the provider and the protector of women. Fry cited the notion of parasitism of the male and female in terms of family matters. But she insists that the parasitism â€Å"goes the other way around. † It is the male that is parasites to females’ because men are pathetic and used up by living by their own. In general, although both women were against the existing arrangement of the roles of men and women in the society, Solano was very radical in her views about the males’ role and the male as a person to the point that she appeared being a man-hater. Fry on the other hand, was more objective although she also deplored the male as weak and parasites to women. But unlike Solano’s views of the male which is very personal and very negative, Fry’s opinion reflects a carefully weigh ideas regarding the issues involving the role of men and women which in the perspective of feminist like them are offensive and binding to women. Is having a maid morally wrong? What are BARBARA Ehrenreich’s reasons for thinking so? Is correct? Why or why not? In my own opinion, having a maid is not morally wrong as long as they are not treated fairly, are not abused, and given just compensation. In the contexts of the employers, maids should not be viewed as slaves rather they should be considered as worker or even employees. Ong (2006) was right in her assessment that having a domestic helper or two is part of the â€Å"bargain with two-income families† (p. 201). Ong noted that a high standard of living is considered impossible â€Å"without one or even two foreign maids to take care of the household chores as well as of children or the elderly† (p. 201). Thus, having a maid at home should be considered as a social right, just like access to better schools, housing, shopping malls, and leisure. However, in the context of the families of these maids, to be maid in a foreign country is a source of hope on their economic miseries. Most of the families these maids came from are poor and the best option for them to survive is for their daughter to get employment overseas. In other words, hiring maids meant helping those families. Unfortunately, there are always people who discriminate others. They tend to abuse their domestic servants by giving them unequal and unfair treatment. According to the Human Rights Watch, many domestic helpers complain of abusive treatments such as not providing them enough food, longer working hours, and racist behavior. These are what is morally wrong and not the hiring of domestic helpers. Barbara Ehrenreich’s thinking about having maids at home On the other hand, Barbara Ehrenreich noted the movement of women around the world and draws a comparison that for every women executive who travels, large number of women from the third world countries leave their families to work as domestic servants in the first world countries. For Ehrenreich, this mass exodus of women is morally wrong because it results in odd displacements. Ehrenreich cited the facts that while these women carry with them the warmth of the female energy into the wealthy country that hired them; this is usually at the expense of their families left behind. Their absent deprive their families of her care which she willingly offer to the families that need her services abroad. For Ehrenreich, having domestic helpers harm one’s moral character and she calls on her readers not hire maids to clean the house. Ehrenreich argued having domestic servants clean the house is not good for the family especially the children. While Ehrenreich was more concern on are supposed to clean the house, which is usually done by the maids, she deplored that cleaning other people’s house is so gross and demeaning. While Ehrenreich may have a point, but this issue should not be seen as morally wrong rather it should viewed in the economic context. Having a maid is not morally wrong because it is a decent job for women who have fewer opportunities in life, especially those coming from very poor families in third world countries. As long as they are treated fairly and justly compensated, it is never morally wrong to employ somebody to do some jobs that one cannot do anymore. It is the most practical thing because it serves in two ways, it benefits the employer because they can concentrate in their work, and it benefits the maid because she will earn dollars for her family back home. Reference Fry, M. (1983) Some Reflection on Separatism and Power http://www. feminist-reprise. org/docs/fryesep. htm Ong, A. (2006) Neoliberalism as Exception USA: Duke University Press Solano, V. Avital, R. (2004) SCUM Manifesto USA: Verso

Why Investors Invest In Hedge Funds

Why Investors Invest In Hedge Funds Abstract Hedge funds have gained a lot of popularity in the last decade and are one of the fastest growing industries. The main aim of most hedge funds is to reduce volatility and risk. It also attempts to preserve capital and deliver positive returns under all market conditions. Not all hedge funds are same therefore it is important to know the difference between them. It differs in terms of its risks,  investment returns and volatility among the different hedge fund strategies. The strategies which are correlated to equity markets deliver consistent returns and have low risk while the ones that are not will be more volatile. Main objective of hedge funds is to provide consistency in its returns for investor, lower portfolio volatility and preserve their capital investments, which is the reason why investors such as pension funds, insurance companies, institutional investors and high net worth individuals and families invest in hedge funds. This thesis reviews various issues relating to the investment in hedge funds, which have become popular with high net-worth individuals and institutional investors, as well as discuss their empirical risk and return profiles. The concerns regarding the empirical measurements are highlighted, and meaningful analytical methods are proposed to provide greater risk transparency in performance reporting. It also discusses the development of the hedge fund industry in Asia. Asian hedge funds have grown vastly in past few years. It is said to have grown nearly six times as many funds while managing ten times are much in assets since 2000 according to Eurekahedge. The industry is estimated to consist over 1100 funds, and managing roughly $175 billion in assets. International managers are starting up their own Asia-focused funds too. Allocators are increasingly eyeing investment opportunities in Asia. Funds with a global mandate are increasing their allocation to Asia. The paper presents an overview of hedge funds, describing their development and characteristics. It also discussed the various issues related to the measurement of hedge fund performance, as well as examined alternative performance measures. This thesis ends with some remarks on the development of the hedge fund industry in Asia. 1. Introduction There has several definition of hedge funds throughout the history. There isnt one particular sentence that defines what hedge funds really means. However, according to Chicago Board Options Exchange (No Date), hedge funds can be defined as: A conservative strategy used to limit investment loss by effecting a transaction that offsets an existing position. Alfred Winslow Jones was the first person to create hedge fund structure more than 50 years ago. The fund established had following feature: He created hedges by investing in securities that was said to be undervalued and funded these positions by taking short positions in overvalued securities hence creating market-neutral position. He designed an incentive fee compensation arrangement for fund mangers. They were paid a percentage of profit from the clients capital assets; and He so invested his own investment capital in the fund, to make sure that his capital and that of his investors were coordinated and in line so that it is not just an individual investment but a partnership Almost all modern hedge funds have above listed features in them, and are set up as limited partnerships with a lucrative incentive-fee structure. In most hedge funds, managers also have a significant portion of their own capital invested in the partnerships. The term hedge fund has been generalized to describe investment strategies that range from the original market-neutral style of Jones to many other strategies and opportunistic situations, including global/macro investing. There is a large variety of hedge fund investing strategies present today and therefore no standard way to classify hedge funds separately. Many data vendors and fund advisors set up their own major hedge fund styles according to their popularity. Under the classification by Credit Suisse, the categories of hedge funds with 9 differentiated styles and a fund-of-funds category: (a) Event driven funds are the funds that take positions on corporate events when companies are undergoing re-structuring or mergers. For example, fund managers would purchase bank debt or high yield corporate bonds of companies undergoing the re-organization which is often referred to as distressed securities. Another event-driven strategy is merger arbitrage where the funds seize the opportunity to invest just after a takeover has been announced. They purchase the shares of the target companies and then short these shares of the acquiring companies. (b) Global funds are categories of funds that invest in non-US stocks and bonds with no specific strategy reference. This fund has the largest number of hedge funds and it includes funds that specialize on the emerging markets. (c) Global/Macro funds are the funds that rely on macroeconomic analysis and invest in long and short position in order to capitalise on major risk factors and unforeseen markets such as currencies, interest rates, stock indices and commodities. (d) Market neutral funds refer to hedge fund strategy that involves utilizing strategies such as long-short equity, stock index arbitrage, convertible bond arbitrage and fixed income arbitrage. Long-short equity funds use the strategy of Jones by taking long positions in selective stocks and going short on other stocks to limit their exposure to the stock market. Stock index arbitrage funds trade on the spread between index futures contracts and the underlying basket of equities. (e) Dedicated Short Bias  funds are strategies that take more short positions than long positions and earn returns by maintaining net short exposure in long and short equities. Detailed individual company research typically forms the core alpha generation driver of dedicated short bias managers, and a focus on companies with weak cash flow generation is common. To affect the short sale, the manager borrows the stock from a counter-party and sells it in the market. Short positions are sometimes implemented by selling forward. Risk management consists of offsetting long positions and stop-loss strategies. (f) Convertible bond arbitrage funds typically capitalize on the embedded option in these bonds by purchasing them and shorting the equities. (g) Fixed income arbitrage is a strategy that bets on the convergence of prices of bonds from the same issuer but with different maturities over time. This is the second largest grouping of hedge funds after the Global category. (h) Short/long fund-, shorts focus on engineering short positions in stocks with or without matching long positions. They play on markets that have raised too fast and on mean reversion strategies. Long funds take long equity positions with leverage. Emerging market funds that do not have short-selling opportunities also fall under this category. (i) Emerging Markets  funds invest in currencies, debt instruments, equities and other instruments of countries with emerging or developing markets (typically measured by GDP per capita). Such countries are considered to be in a transitional phase between developing and developed status. Examples of emerging markets include China, India, Latin America, much of Southeast Asia, parts of Eastern Europe, and parts of Africa. There are a number of sub-sectors, including arbitrage, credit and event driven, fixed income bias, and equity bias. (j) Fund of funds refer to funds that invests in a pool of hedge funds. They specialize in identifying fund managers with good performance and rely on their good industry relationships to gain entry into hedge funds with good track records. Table 1 gives statistics about the various categories of hedge funds and past performance. The global/macro hedge funds provided the best mean return over the period studied, while the event-driven funds had the lowest standard deviation of returns. On a risk adjusted basis which is obtained by dividing the mean return by the standard deviation, the category of fund that ranks highest is the global/macro funds followed closely by event-driven funds. Hedge funds are not required to publicly disclose performance and holdings information unlike the registered insurance companies, which might be construed as solicitation materials. This is the reason why which makes it more difficult for investors to evaluate hedge fund managers. TABLE 1 Jan 2000   Nov 2009 Categories Mean Return (%) Standard Deviation (%) Risk-Adjusted Return Event driven 8.66 5.44 1.60 Global 6.60 6.23 1.06 Global / Macro 12.28 6.07 2.02 Market neutral 2.09 13.48 0.16 Short/Long 5.50 8.88 0.62 Emerging Market 9.23 11.05 0.84 Convertible Arbitrage 6.98 8.34 0.84 Dedicated Short Bias (1.95) 16.40 (0.12) Fixed Income Arbitrage 3.66 6.81 0.54 Source: Credit Suisse/ Tremont hedge index Notes: The mean returns are annually compounded returns over the period 2000 to November 2009, The annualized standard deviations were computed from of the standard deviation of monthly returns for each investment style. Risk-adjusted returns are obtained by dividing the mean return by the standard deviation. In 1990 the entire hedge fund industry was estimated at $20 billion. At the end of 2008, global hedge fund industry was estimated to be worth $1 trillion with 8350 active funds. It has gained a lot of popularity in the last decade and is one of the fastest growing industries. While hedge funds are well established in US and Europe, they have also been growing rapidly in Asia. Hedge funds have posted attractive returns. A seven year annualised return of 2.47% posted by Hedge Fund Research (HFR) from 2003 to 2009, higher than the SP 1200 of 1.18%. Hedge funds are seen as natural hedge to control downside risk because they employ investment strategies believed to generate returns that are uncorrelated to traditional asset classes. Hedge funds differ in strategies- a macro fund such as quantum fund generally take a directional view by betting in particular bond market or a currency movement. Other funds specialise in corporate events such as mergers or bankruptcies. They also vary widely in investment strategies and the amount of financial leverage. In the recent financial crisis, hedge funds have been heavily criticised in terms of their strategies and also for the fact that in 2008, they have had hard time fulfilling their absolute return targets. There have been other criticisms towards hedge fund regarding this particular crisis. Stromqvist (2009) writes that ever since the growth of hedge fund industry there has always been discussions regarding the role of hedge funds in a financial crisis. The main focus of the criticism was on highly leveraged hedge funds and that they may have a large impact on price stability on both currencies and equities. In an article written in The Times, Dillow (2008) observes that even though average return of hedge funds in 2008 has been poor, they have not been a serious source of instability in the wider financial system. Regardless of the recent financial crisis, hedge funds still generate a growing number of interests all around the world. Due to their private nature, it is difficult to obtain information about the operations of individual hedge funds and reliable summary statistics about the industry as a whole. It is a common belief that investing in hedge funds can have superior returns. Many success stories have emerged in the past and the most popular of which is the George Soros story. In September of 1992, he risked $10 billion on a single  currency  speculation when he shorted the British pound, which gave him an international fame. He was right, and in a single day he successfully generated a profit of $1 billion â‚ ¬Ã¢â‚¬Å" ultimately, it was reported that his profit on the transaction almost reached $2 billion. Therefore, he is famously known as the the man who broke the  Bank of England. The greates investor: George Soros, http://www.investopedia.com/university/greatest/georgesoros.asp 16-12-09 As seen in Table 1, the hedge funds as a group can generate positive returns. For example, over the period 1990-1997, all the hedge funds had positive absolute returns. Global/Macro funds obtained mean returns of 28.1% p.a. with a standard deviation that is comparable to equity funds. Traditional asset allocation makes the most of the use of equities, bonds, real estate and private equity to invest in a portfolio that maximizes returns and minimizes the portfolio risk. Therefore, in an investment portfolio hedge funds can play a vital role in maximising returns. Moreover, in a bear market, many investment and fund mangers find it dull to just beat the market index, which may have negative returns. They generally prefer to go short or avoid long positions to have positive returns. Choosing an appropriate hedge fund to invest increases the possibility of obtaining positive absolute returns. It is also generally believed that hedge funds have returns that are generally uncorrelated with the traditional asset classes. In fact, hedge funds may even have a lower risk profile. For example, Morgan Stanley Dean Witter (2000) reported that hedge funds exhibit a low correlation with traditional asset classes, suggesting that hedge funds should play an important role in strategic asset allocation. The answer to the question Why invest in Hedge funds? simply is to make money. The common analogy in all hedge funds strategies and the underlying rationale for investing in hedge funds is the search for absolute returns. This is sometimes called alpha. Alpha is the extra return a skilled manager can produce over and above the market return (or beta). Whereas many conventional fund managers aim simply to outperform their chosen benchmark index, hedge fund managers seek to produce positive gains in all market conditions. http://www.fleetstreetinvest.co.uk/shares/trend-investing/hedge-fund-investing-00128.html Research Question By using quantitative study, I will try to answer the following questions: Why investors invest in hedge funds? To answer this question I will be looking at the return, risk and performance associated with investing in hedge fund and how the fund mangers. By looking at the annualised return, standard deviation and risk adjusted returns of different styles of hedge funds their performance can be measured. What are the issues relating the investment in terms of risk, return and performance measurement? Although hedge funds are popular in terms of an investment vehicle, there are various issues. The issues related are its cost/ management fee structures, collection of data, survivorship bias and selection bias. Various performance measure techniques are available for hedge funds too. I will be looking at some of the performance measurement approaches. Purpose There are several purpose for this paper. First is to give an overview of hedge fund as an investment vehicle with a short description of different characteristics and styles of hedge funds. Second is to describe why hedge funds are attractive for investors and fund managers by presenting different theories where risk and returns of hedge funds are investigated in order to evaluate the performance measures. Third purpose is to investigate the issues related to the investment in hedge funds where several sets of issues are evaluated and various performance measures are identified. LITERATURE REVIEW There is no one particular definition of hedge fund as mentioned earlier. According to the Investment Company Act 1940 of the US, hedge funds were defined by their low degree of regulatory controls. In comparison to mutual funds, hedge funds were seen to have higher level of risk. This led to a 100-investor limit as well as wealth requirement of the investors. Fung and Hsieh (1999) claim that another reason for 100-investor limit is the use of leverage and short selling in hedge funds. The limit restrictions were later abandoned and wealth requirement lowered. Many definitions of hedge funds have been cited-most of them mainly based on its characteristics. Some of them are: Investment companies that by their charter can buy on margin, sell short, hold warrants, convertible securities and commodities and otherwise engage in aggressive trading tactics in order to profit from forcasting market swings.- Polhman, Ang and Hollinger (1978) A mutual fund that employs leverage and uses various techniques of hedging- Soros (1987) hedge funds are vehicles that allow private investors to pool assets to be invested by a fund manager. Unlike mutual funds, hedge funds are commonly structured as private partnerships and thus subject to only minimal SEC regulation. Moreover, because hedge funds are only lightly regulated their managers can pursue investment strategies involving, for example, heavy use if derivatives, short sales and leverage.- Bodie, Kane and Marcus (2008). Murguia and Umemoto (2004) claims that the reason why there is no proper definition of hegdge funds is because they are not classified by the different asset classes but by the type of strategies employed by the fund mangers is what classifies them. Such strategies range from very aggressive to conservative, which is the reason why there is no clear definition. Several studies have been carried out about hedge funds performance and risk issues. Fung and Hsieh (1997a) extend Sharpe (1992) style analysis and conclude that there are more diversified hedge fund strategies and suggested that hedge fund strategies are more dynamic. The literatures also conclude that option-based factors can enhance the power of explaining hedge fund returns. Brown, Goetzmann and Ibbotson (1999) examine the performance of offshore hedge funds and attribute fund performance to style effects rather than managerial skills. Brown, Goetzmann and Liang (2003) found, in a study using the TASS database, that fund of hedge funds reduce by a third the standard deviation of monthly hedge fund returns, as well as significantly reduce the value at risk of hedge fund investment. Hence, fund of hedge funds can also provide significant diversification potential. A well-diversified fund of hedge fund manager can therefore take advantage of market-specific risks while maintaining low correlations to stock, bond, and currency markets. As a result of which the fund of hedge fund manager can provide superior returns and generate alpha which reflects managerial skills. More generally, since fund of hedge funds deliver more consistent returns with lower volatility than individual hedge funds, they are considered to be ideal for diversifying traditional portfolios. During 1993â‚ ¬Ã¢â‚¬Å"2001, fund of hedge funds outperformed the SP 500 index on a risk-adjusted basis (Gregoriou, 2003a). Koh, Koh, Lee and Phoon(2004) state that traditional asset allocation optimizes the use of equities, bonds, real estate and private equity to invest in a portfolio that maximizes returns and minimizes the portfolio risk. Thus, hedge funds become vital in enhancing returns in an investment portfolio. Following the growth in hedge fund industry, fund-of-hedge funds (FOF) have become more and more popular. Liang (2003) states that FOF mixes various strategies and asset classes together and creates more stable long-term investment returns than any of the individual funds. It invests in underlying hedge funds and diversifies the fund specific risks and relieves burdens on investor to select and monitor managers, and providing asset allocation in dynamic market environments. Fund-of-funds require less initial investment as compare to hedge funds and therefore are more affordable for small investors. To participate in the investment, small investors may be willing to pay extra fees as it might be the only way for them. Previous studies in this area by Brown, Goetzmann and Liang (2002) conclude that combining hedge funds with fund-of-funds not only causes the double counting but also hides the difference in fee structures between hedge funds and fund-of-funds. Liang (2003) state that a hedge funds charges a management fee and incentive fee while a fund-of-funds not only charges these fees at a fund-of-fund level but also passes hedge fund level fees in the form of after fee returns to the fund-of-fund investors whether or not the fund-of-funds make a profit. Brown, Goetzmann and Liang (2002) examine this issue and propose an alternative fee which provide a better incentive for fund-of-fund managers and reduce the cost for investors under the current fee structure, which is that the fund-of-fund managers absorb the underlying hedge fund fees and establish their own incentive fees at the fund-of-fund level. Liang (2003) conclude that because of the above issues fund-of-funds need to be separated from hedge funds in academic studies and address the difference in performance, risk and fee structures. However, the FOF mangers can add value to the portfolio through selection, construction and continuous monitoring of the portfolio. They provide professional services and have access to the information that are expensive and difficult to obtain otherwise. The FOF mangers quite often use different investment strategies and styles through a diversified portfolio of individual fund managers. Considering these advantages for an investor, investing in fund of hedge funds is not cheap. The cost can be as high as the cost of buying a building, according to Koh, Koh, Lee and Phoon (2004). This structure allows for more diversified portfolio and much reduced risk at the fund level which comes at a price. More diversified the portfolio is it is more likely that it will incur more incentive fees. Therefore, there are many persuasive reasons why investing in hedge funds are considered as alternative investments. Some uninformed investors may be misled about the risks and returns on hedge funds as it relies heavily on statistical compilation from the database vendors which is filled with data bias such as survivorship bias and selection bias. Fung and Hsieh (2001a) found that estimates of survivorship biases differed across two commonly used databases, HFR and TASS. The survivorship bias was much higher in TASS than that in HFR. They estimated that survivorship bias would over-report hedge fund mean returns by about 1.5% to 3% per annum. Brooks and Kat (2001) stated that around 30% of newly established funds do not survive the first three years, primarily due to poor performance. Thus, not including defunct funds is likely to lead to over-estimation of the returns and profile of hedge fund industry.