August 20, 2017

Hedge Funds Basics: Video

Here’s a quick video that gives you some hedge funds basics.

Hedge Funds Basics

hedge funds basics

ABCs of Hedge Funds explained in simple terms.

A hedge fund is a private, actively managed investment fund that utilizes sophisticated strategies in international and/or domestic markets designed to offset losses during a market downturn and/or generate returns higher than traditional stock and bond investments.[1][2]

The first hedge fund began in 1949 and was designed solely to neutralize the effects of a bear market on an investment portfolio. However in modern times many hedge funds have become aggressively managed and may speculate in volatile assets such as foreign currencies and commodities, and aspire to accumulate capital gains based on future price movements.[1][3][2] Hedge funds are privately managed, loosely regulated, utilize advanced investment strategies, have high management fees and are open only to qualified private investors or institutions.[4] The hedge fund industry has grown rapidly in the past decades and is estimated to have $1.9 trillion in assets under management.

Hedge funds utilize a wide array of investment strategies according to the goals of their managers and clients. Some investment strategies include: Global macro, directional, event-driven, relative value (economics) and many others. Hedge funds are generally unsupervised by national regulatory agencies and, on occasion, have been accused of destabilizing various financial markets.[1]

Wikipedia coverage here

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