which is the number of years at the average

return that an investor would recover from the worst lost.

This of course,

would assume that they entered the fund at the worst possible moment.

But somebody will right, and you don't want it to be you.

It's interesting to see that for the SMP 500, the years to break even is over 11.

Hedge funds need to have the years to break even in the two to three year range

maximally, in order to continue to attract new investment.

>> Finally, to minimize correlation with equity markets, investors like to see

a strong linear trend in the log value of wealth in a fund.

If a fund is generating a steady,

continually compounded return every day, its volatility of return would be zero.

And its internal linear correlation of time and log wealth would be one.