2011年7月30日 星期六

Hedge Funds | Hedge Funds. What Are They?

Hedge funds have been around since the fifties, but only grew in popularity in the 1960s. With big names like George Soros and Michael Steinhardt, fund management achieved a high profile within the investment community and beyond. During this time, which Is not 't get enough of the show was that a hedge fund actually did.

Hedge funds are very similar to mutual funds, except for fewer regulations and therefore can invest in a wide range of investments including shares, debt, commodities and so on. Hedge funds have the freedom to seek to offset potential losses in the markets of capital invested in hedge their investments through a variety of methods, hence the name hedge funds. There are about 14 different investment strategies used by hedge funds, each with varying degrees of risk and return. A macro hedge fun, for example, invests in equities and bonds and other investment opportunities, such as currencies, hoping to profit in significant changes in such things as global interest rates and countries " economic policies.

A hedge fund usually commit to a particular investment strategy, investment rates and leverage levels through declarations in the documentation it provides, thus giving investors an idea of ??the nature of the fund.

A persistent error in the general public is that all hedge funds act the same. Not true. On the one hand, has that "few," short for investors to adjust by software quantitative investment strategies. On the other hand, there are hedge funds that invest in the market by getting under the skin of the companies and review their past performance and current and future earnings.

The other misconception is that all hedge funds are volatile. In fact, less than 5% of hedge funds are global macro funds. Most hedge funds use derivatives only for hedging or don 't use derivatives at all, and many do not use leverage.


The largest hedge funds in Europe are Barclays Global Investors, Cheyne Capital, Howard Brewer, GLG Partners and Man Investments, among others.

沒有留言:

張貼留言