Hedge Fund Terms – C

Calmar Ratio – This is a return/risk ratio. The Return (numerator) is known as the Compound Annualized Rate of Return over the last 3 years. Risk is known as the Maximum Drawdown over the last 3 years. If three years of data are not available, the available data is used. ABS is the Absolute Value.

Compounded Annual Return – The compounded annual return is essentially the compounded monthly return multiplied by the power of 12.

Compounded Monthly Return – The compounded monthly return is the return that if compounded over the life of the fund would lead to the total return of the fund. For example, if a fund has 10 months of return equaling 100% as a total compounded return. The compounded monthly return would be 7.18%.

Current Leverage – This is the amount of leverage presently used by the fund as a percentage of the fund.

Current Net Exposure – This is the level of exposure of the fund to the general market during the current period of time. This is calculated by subtracting the short percentage from the long percentage.

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