In May, 2015, you calculated the following performance data of a prominent hedge fund:

a) In your opinion, what is this funds most impressive performance statistic? Explain your answer.

b) Based upon this information, into which category of hedge fund strategy does this fund probably fall? Why?

c) Assuming this fund was not a fraud (which it was not), would you be inclined to invest in it? Why or why not?

2010 2011 2012 2013 2014 2015 (4 mos) Fund return: 13.22% 8.39% 6.32% 13.27% 12.09% 4.68% S&P 500 Index: 15.06% 2.11% 16.00% 32.39% 13.69% 1.93% [Note: S&P 500 Index returns represent total returns, including reinvested dividends.] Fund Statistics: Past 3 Years Annualized Return 11.1% Jensen's Alpha to S&P 500 10.8% Annualized Standard Deviation 3.4% Sharpe Ratio 3.21 Sortino Ratio 6.87 Beta to S&P 500 0.00 Correlation to S&P 500 -0.01 Percentage of Profitable Months 83% Since Inception 14.4% 10.4% 4.4% 2.49 3.32 0.09 0.29 88%