Search results
Results From The WOW.Com Content Network
The word "hedge", meaning a line of bushes around the perimeter of a field, has long been used as a metaphor for placing limits on risk. [9] Early hedge funds sought to hedge specific investments against general market fluctuations by shorting other, similar assets.
A hedge is an investment position intended to offset potential losses or gains that may be incurred by a companion investment. A hedge can be constructed from many types of financial instruments, including stocks, exchange-traded funds, insurance, forward contracts, swaps, options, gambles, [1] many types of over-the-counter and derivative products, and futures contracts.
The Standards Board for Alternative Investments (SBAI), formerly known as the Hedge Fund Standards Board, is an international standard-setting body for the alternative investment industry and sets the voluntary standard of best practices and practices endorsed by its members. Its primary role is to be the custodian of the Alternative Investment ...
When comparing hedge fund ETFs or private equity ETFs, pay attention to the fund’s strategy and its underlying investments. Also, consider the ETF’s performance, risk profile, and cost.
In an interview, fund manager Bob Treue, who had started a hedge fund specifically to capitalize on the opportunities left over by LTCM's failure, stated that excess collateral is the key to the survival of a fixed-income relative-value strategy, and that this is the primary reason LTCM failed. Further, LTCM's failure has had an enormous impact ...
• transparency of detailed findings to the end investor – note that managers of funds of alternative investment funds (e.g. fund of hedge funds managers) typically do not provide full transparency to their investors of the findings of their ODD, with investors simply becoming aware, after the fact, that an investment in an “underlying ...
And among global hedge funds taking long and short bets on stocks last year, the total weighted average return came in at 12.75%, according to a private Goldman Sachs note that was seen by Reuters.
These swaps are popular with hedge funds because they get the benefit of a large exposure with a minimal cash outlay. [1] In a total return swap, an investment bank could buy assets for a hedge fund, which is paid returns from the assets. [2] The hedge fund can thereby remain anonymous insofar as the investment bank is the owner. [2]