１．リターンと基準価額（NAV＝NET ASSET VALUE）
Fund evaluation methodology #1
When you select not only a hedge fund but a mutual fund from several thousands of funds, you must evaluate the funds accurately in order to not invest in a fund, which is not suitable to you.
In fact, there is no big difference in evaluation between hedge funds and mutual funds. Therefore, those evaluation methodologies will surely work when you compare the funds in your portfolio.
１．Return and Net Asset Value
This is to evaluate the returns of the funds on absolute basis among those funds.
For example, let’s take a look at G-fund and S-fund below. G-fund outperformed S-fund in 2012.Without measuring other factors, G-fund is better than S-fund in comparison.
But, what happened to the average annual returns of these two funds during a three year period from 2010 to 2012. G-fund was 15.6% and S-fund was 18.2%. Therefore, it is very difficult to judge which fund performs better only by the comparison of absolute returns.
It is needless to say that experienced investors understand this well, though I will discuss how to evaluate funds furthermore.