Devise a Hedge Fund Strategy (60 points) You are setting up a new hedge fund that offers what you believe to be a novel

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Devise a Hedge Fund Strategy (60 points) You are setting up a new hedge fund that offers what you believe to be a novel

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Devise a Hedge Fund Strategy (60 points)
You are setting up a new hedge fund that offers what you believe to be a novel strategy. Answer the questions below to motivate your choice of strategy and to prepare your pitch to investors. Aim at providing concise and focused answers.
Note that you are free to choose any hedge fund strategy style segment.
a. Outline the strategy of your hedge fund: its investment objective and investment approach, the combination of instruments in which it is invested and the trading approach that it follows. What characteristics of your strategy make it stand out within its strategy segment?
b. What are the relevant factors that would drive the performance of your strategy? Propose a model that could be used to understand the underlying risk exposures of your strategy. Identify the limitations of your proposed model.
c. Indicate your fund’s fee structure and liquidity restrictions. How would they help you market the fund to investors?
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