r Table 3. Stepwise Regression Results for 16 Hedge Fund Strategies Strategy Intercept Equity- Gov-wld Currency Gold Emerging S&P 500 Eurodolla Gov.corp R-squared wld Composite 0.68 0.68 0.68 0.23 Convertible -1.14 0.19 0.08* 0.35 0.21 0.40 arbitrage Distressed 0.64 0.22* 0.29 securities Emerging markets 0.75* 0.29+ 0.58+ 0.77 Fixed income 0.73* 0.12* 0.15* 0.33 Foreign exchange 0.49 0.76 0.550 0.2 # Fund of funds -1.51 0.23* 0.31* 0.200 0.10* 0.37 0.67 Growth -5.22 0.16* 0.56 1.13 -0.79" 0.71 Macro 0.24 0.64" 0.72" 0.64 0.59 0.71 Market neutral -1.56 0.13+ 0.43 0.27 Market timing -0.08 0.67* -0.32* 0.67 * 0.94 0.140 0.134 0.33 Merger arbitrage Opportunistic Sector 0.98 -0.228 0.16 0.07 0.29* 0.53 0.52 0.43* 0.31* 0.88 -0.81 0.60 Short selling 1.26 -0.57" -1.41" 1.40 0.48 Value 0.69 -0.24 0.11 0.46 0.68 Questions are here: ) What can you tell from the factor exposures of various hedge fund strategies? ) What can you tell from the R-squared of various strategies? ) What can you tell from the intercept terms of the regressions