Hi all,I was wondering can one adopt the Henriksson and Merton parametric market timing model to analyse hedge fund managers' in order to ascertain whether a hedge fund manager will outperform /underperform the riskfree rate over periods?Also can one adopt quadratic market timing and stock selection models proposed by Treynor & Mazuy (1966) to capture the market timing ability and stock selection ability of hedge fund managers?I know there has been alot of research done on this area but it mostly relates to mutual funds. Is it possible to conduct similar analysis on hedge fund managerial performance assuming that one has reliable data sources?Also does anyone know of any papers that have been conducted on this area as I have tried in vain and cannot see any research approached from this angle before in relation to hedge fund mangerial performance with the majority of analysis on the statistical performance of hedge funds. All comments are greatly appreciated and many thanks!!

Hi all,Just seen that there has been quite a few views on this post and not any reply yet. Can anyone expand / pffer advice or insight?Many Thanks!

Sure, go ahead and apply those models. What you should realize is that hedge funds, on an overall basis, are trending towards mediocrity. They're tending to do the same things at the same time with similar results.

I think it is very hard for hedge fund to raise capital, right? Usually how do they do that?