Equity Investment Style Classification

Hedge-fund style analysis is best performed using:

Incorrect. Return-based style analysis is going to compare style returns to style benchmarks. But hedge funds don't conform to standard styles.

That's not it. Holdings-based style analysis is used for funds that reveal their own holdings, but hedge funds don't usually reveal holdings data.

Correct. Self-identification is best for hedge funds because these funds don't usually reveal their holdings, and returns are difficult to compare since the strategy is usually unique. So reading the prospectus is key for these types of funds.

Return-based style analysis.

Holdings-based style analysis

Self-identification style analysis.