• Korean System Dynamics Review
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• v.17 no.3
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• pp.91-120
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• 2016

This study explores hedge fund characteristics that affect hedge fund performance, namely, fund size, fund age, and performance fee. Previous studies have examined relationships between hedge fund characteristics and fund performance using singular and static thinking to report inconsistent findings without providing full understanding of the causal relationships among variables. To identify that comprehensive causal relationships between hedge fund characteristics and hedge fund performance, this research applies the system dynamics perspective, which allowed demonstration of the interactions within the overall system beyond the singular causal relationships between hedge fund characteristics and performance found in existing traditional research. This study contributes to existing literature in the following ways. First, it overcomes the limitations of singular research methodologies by looking at the integrated system of hedge fund characteristics and fund performance from a bird's eye view based on their dynamic feedback relationships. Second, policy suggestions in terms of regulation and education are presented as growth strategies for the sustainable development of the Korean hedge fund market.

• Journal of the Korean Data and Information Science Society
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• v.26 no.6
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• pp.1189-1198
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• 2015

For the effects of the global financial crisis cause hedge funds to have a strong influence on financial markets, it is needed to study new approach method to predict hedge fund survival. This paper proposes to organize fuzzy neural network using hedge fund data as input to predict hedge fund survival. The variables of hedge fund data are ambiguous to analyze and have internal uncertainty and these characteristics make it challenging to predict their survival from the past records. The object of this study is to evaluate the predictability of fuzzy neural network which uses grades of membership to predict survival. The results of this study show that proposed system is effective to predict the hedge funds survival and can be a desirable solution which helps investors to support decision-making.

• Journal of the Korean Data and Information Science Society
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• v.19 no.4
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• pp.1073-1080
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• 2008

Reverse convertible fund is a method of investment assuring both profit and stability in an unstable stock market, and shares characteristics of a hedge fund and derivative securities. This study analyzes empirically whether reverse convertible funds can indeed serve as a new method in variable stock market environment to provide high profit with low risks especially in the Korean stock market.