Category Archives: Hedge Fund Strategies
Hedge Fund Insurance: A Good Investment?
Hedge Fund managers spend endless amounts of time and money analyzing and determining the appropriate investments to hedge risk in their portfolios. Can any manager afford to disregard the risks in their business? Originally set-up by Alfred Jones in 1949 to eliminate risk by holding long positions and short-selling other stocks, the Hedge Fund industry has mushroomed in size to […]
Starting a Forex Hedge Fund
Market conditions have never been better for setting up a forex fund. The number of forex funds and corresponding investors has grown as a result of expanding customer markets. Therefore, traders interested in starting a forex fund (or managing customer accounts) should familiarize themselves with the legal landscape as they consider earning a living in this profitable retail industry. An […]
Real Estate Hedge Funds
Hedge funds enjoy the unique freedom of investing in anything and everything, making them much more diverse than your average mutual fund. Recently, managers have been adding real estate to that list of nontraditional investments. There are estimated to be about 40 real estate hedge funds in existence today. Not to be confused with asset based lending, although similar, real […]
Global Macro Hedge Funds
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 macroeconomic principles used by […]
Forex hedge funds
Over $3 trillion dollars is traded every day on the foreign exchange market. This market, also called Forex, exists whenever one currency is traded for another. Big players in this market include large banks, governments, central banks, corporations, currency speculators, and hedge funds. Top 10 Currencies Traded U.S dollar Euro Japanese yen British pound sterling Swiss franc Australian dollar Canadian […]
Hedge Fund Risk
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 so many different strategies employed […]
Venture Capital Funds
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 venture capital comes from a group of […]
What is an asset-based lending hedge fund?
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 tower and funds run dry. […]
Fund of Funds
A Fund of Funds, by definition, is a fund that invests in other hedge funds, rather than in individual securities. Any fund that pools capital together, while utilizing two or more sub managers to invest money in equity, commodities, or currencies, is considered a Fund of Funds. Investors allocate assets to Fund of Funds products mainly to diversify amongst the […]
Dubai Hedge Fund and Private Equity Activity Trend
While Dubai is a tourism hotbed and most well known for its modern architecture, indoor ski slopes and record numbers of tourists it is fast positioning itself as the financial center for northern Africa and the middle east as a whole. There are over 400 investment firms now based in or that have plans to build offices in the Dubai […]
What are some Emerging Investment Strategies for Hedge Funds?
Risk Arbitrage Risk arbitrage hedge fund strategies usually involve purchasing stocks of companies that are likely takeover targets, while assuming short positions in the would-be acquiring companies. Risk arbitrage hedge fund managers can employ an event-driven investment strategy or merger arbitrage investment strategy, seeking situations such as hostile takeovers, mergers and leveraged buyouts. Such funds typically experience moderate amounts of […]
What is an Incubated Fund?
An incubated fund (also called a limited distribution fund) is a hedge fund that is offered privately to a very select group of individuals, usually family members or employees of the fund. This is so the fund can stay small and unregulated while testing different investment strategies. If the fund does well, it may then be offered to outside investors. […]
