About Hedge Funds
- Topics:
- Commercial Lending
- Tags:
- Finance,
- Financial Services,
- Hedge Fund,
- Hedge Fund Strategy,
- Investment,
- Magnum Global Investments,
- Strategy,
- Volatility
- Source:
- Magnum Global Investments
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Overview: A hedge fund is a fund that can take both long and short positions, use arbitrage, buy and sell undervalued securities, trade options or bonds, and invest in almost any opportunity in any market where it foresees impressive gains at reduced risk. The primary aim of most hedge funds is to reduce volatility and risk while attempting to preserve capital and deliver positive returns under all market conditions. Knowing and understanding the characteristics of the many different hedge fund strategies is essential to capitalizing on their variety of investment opportunities. It is important to understand the differences between the various hedge fund strategies because all hedge funds are not the same -- investment returns, volatility, and risk vary enormously among the different hedge fund strategies. The predictability of future results shows a strong correlation with the volatility of each strategy. Future performance of strategies with high volatility is far less predictable than future performance from strategies experiencing low or moderate volatility.
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Format: HTML | Date: Jan 2003 | Pages: 1
