What is the main purpose of a fact sheet in hedge fund management?

The primary purpose of a fact sheet in hedge fund management is to report historical performance and risk-adjusted returns. A fact sheet serves as a concise summary that provides potential investors with essential information about a hedge fund's track record, investment strategy, and performance metrics. This allows investors to quickly assess how the fund has fared in different market conditions and against relevant benchmarks, which can be critical when making investment decisions.

Within a fact sheet, key performance indicators such as annualized returns, volatility, Sharpe ratio, and other risk-adjusted measures are typically highlighted. This presentation of information helps investors understand the fund's historical performance relative to its risk profile, enabling informed comparisons with other investment options or funds.

Other choices, while relevant to various aspects of hedge fund management, do not encompass the primary aim of a fact sheet. For instance, while a detailed outline of investments may be informative, it does not capture the essential performance-driven nature of the fact sheet's purpose. Similarly, evaluating investment opportunities and illustrating team structure are important but pertain to different aspects of hedge fund management and marketing materials, rather than the core focus of a fact sheet.