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Alternative Investments Q100

100Patrick has positions in multiple long-short equity hedge funds and is worried about whether these positions are sufficiently diversified. He will most likely be concerned about the lack of:
  • Option : A
  • Explanation : Hedge funds generally do not reveal their holdings therefore Patrick will have difficulty in determining if different portfolios are holding diverse or concentrated positions (both within each fund and between funds). Longshort equity hedge funds invest in liquid, publicly traded equity, therefore the underlying positions can be reversed easily and there is no need for independent valuations because current market prices are available.
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