Subtract 1 and then multiply by 100, and the result gives you your percentage gross return from your hedge fund investment. That's similar to how you would calculate gross returns for any investment.

Gain insights on portfolio management through short-term returns. Learn to calculate and interpret monthly returns for informed long-term investing decisions.

One simple but powerful method investors can use to assess the risk and reward of a stock portfolio is using the Capital Asset Pricing Model, or CAPM, model for expected returns.