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HEDGEDUCATION - HEDGE FUND ARTICLES

Hedge Fund Strategies

Global Macro Hedge Funds
By HedgeCo Networks - August 7th, 2009

With all of the various hedge fund strategies that managers employ, the global macro strategy is one of the broadest yet most detailed approaches used to garner sizable returns.
The global macro manager usually uses leverage to make bets on price movements in any market of the world, hence the term “global.”  The term “macro” refers to the … Continue Reading


Hedge Fund Risk
By HedgeCo Networks - August 7th, 2009

The term “hedge fund” was originally coined due the fact that managers would try to hedge the funds against risk in the market by taking both long and short positions. However, risk is almost impossible to avoid in today’s volatile economy, though hedge fund managers do try to use various risk control tactics.
There are … Continue Reading


Hedge Fund Risk Management
By Richard C. Wilson - August 7th, 2009

When trying to maximize absolute returns, the importance of assessing and mitigating risk shouldn’t be underestimated. Some memorable examples like LTCM and Tiger Fund not only show how heavy losses can be for some participants of the hedge fund industry, but also reinforce the perception that a good record of high absolute returns can mean … Continue Reading


Bear Stearns - The domino effect that began with the hedge fund collapse
By HedgeCo Networks - August 6th, 2009

When most people think of Bear Stearns, they think of its recent collapse and the resulting purchase by JPMorgan Chase. However, the demise of Bear Stearns can really be traced back to two failed hedge funds during the summer of 2007 which created a domino effect on the entirety of the company. Let’s … Continue Reading


Venture Capital Funds
By HedgeCo Networks - August 7th, 2009

According to Wikipedia, a venture capital fund is a pooled investment vehicle (often in the form of a limited partnership) that primarily invests the financial capital of third-party investors in enterprises that are too risky for the standard capital markets or bank loans. Venture capital can also include managerial and technical expertise. Most … Continue Reading


The History of Hedge Funds
By HedgeCo Networks - August 6th, 2009

In 1949, Alfred Winslow Jones devised and implemented an investment strategy that would forever brand him as “the father of the hedge fund industry.” While working for Fortune Magazine and investigating financial strategies, Jones decided to launch his own fund and raised a total of $100,000, $40,000 of which was his own money.
Jones employed … Continue Reading


How Do Hedge Funds Work?
By HedgeCo Networks - August 7th, 2009

While there is no specific formula for how hedge funds work since different hedge funds employ a multitude of different strategies, there are some common characteristics that are present in most hedge funds. All hedge funds start with a hedge fund manager.
This manager brings a specific strategy or investment philosophy to the table. … Continue Reading


What is an asset-based lending hedge fund?
By HedgeCo Networks - August 6th, 2009

Asset-based lending is a strategy employed by some hedge funds that has been gaining popularity in recent years. Asset-based lending is where a company (the hedge fund) loans another company a set amount of money, and that loan is backed by collateral (an asset).
Let’s say a builder is in the process of constructing a … Continue Reading


Hedge Fund Strategies
By HedgeCo Archives - August 6th, 2009

Aggressive Growth:
Invests in equities expected to experience acceleration in growth of earnings per share. Generally high P/E ratios, low or no dividends; often smaller and micro cap stocks which are expected to experience rapid growth. … Continue Reading