# Hedge Fund Terms – T

**Total Return Since Inception** – The total Cumulative return for the fund since inception

**Treynor Ratio** – This ratio was developed by Jack Treynor and is similar to the Sharpe Ratio. It differs in that it uses Beta to measure volatility. The Return (numerator) is defined as the average return as seen in increments of an investment over the risk free rate. It defines the Risk as the Beta of the returns on the investment relative to a benchmark.

**Typical Leverage** – The amount of leverage normally used by the fund as a percentage of the fund.

**Typical Net Exposure** – This the amount of exposure that the fund has to the market in which the fund attempts to maintain over time. It is calculated by subtracting the short percentage from the long percentage.