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The second portfolio was the mixture of shares, bonds and T???Bills with a 10 p.c allocation to a broad group of two,000 hedge funds as represented by the HFRI Fund???Weighted Composite Index. Finally, we changed the index with a bundle of 5 managers that Hedgeharbor represents with the identical overall allocations to equities, bonds and T???Bills. Chart 1 shows the risk???reward characteristics for these three sets of portfolios.
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