Understanding Hedge Funds
Hedge funds are investment vehicles that employ various strategies to generate returns for their investors. Unlike traditional investment funds, hedge funds have more flexibility in their investment strategies and can use leverage, derivatives, and short-selling.
Common Hedge Fund Strategies
Long/Short Equity
Taking long positions in undervalued stocks and short positions in overvalued stocks to generate alpha.
Event-Driven
Profiting from corporate events such as mergers, acquisitions, restructurings, and bankruptcies.
Global Macro
Trading based on global economic trends and events affecting markets worldwide.
Distressed Securities
Investing in companies experiencing financial difficulties or bankruptcy proceedings.