It seems investors, media, Hedge Fund databases, etc place emphasis in ranking/assessing hedge funds via volatility measures: St ddev, sharpe ratio, sortino ratio, etc. I wonder if this is not a short-sighted approach. Personally I would accept a high volatility level for high annualized returns. So my question is how do you strike a balance between "reasonable" volatility and high returns. What's a good measure of a volatility/return balance? What max drawdown would you accept for annual returns in excess of 40%? What max mthly loss would you accept for high annual returns? There are many more questions, but I guess the theme has been made clear. Please share your thoughts. Thanks!