Jaylen Doshi

Effectiveness of Hedge Fund Strategies across Business Cycle.

Started Nov. 24, 2025

Abstract or project description

The student and I are working on a research project that examines the effectiveness of different hedge fund strategies across various stages of the business cycle. The project analyzes a representative sample of four to five hedge fund products within each of the seven major hedge fund strategy categories. Using historical performance data, the student compares the returns and risk characteristics of these strategies relative to one another, as well as against the S&P 500 index as a benchmark for traditional equity markets. This comparative approach allows for an evaluation of how each strategy performs under differing economic conditions. The primary objective is to test whether any single hedge fund strategy consistently outperforms across all phases of the business cycle. Ultimately, the project aims to demonstrate that while no strategy is universally superior, certain strategies tend to perform better during specific phases such as early expansion, mid-cycle growth, late-cycle conditions, or recessions.