Hedge Fund Strategies
• In this type of Hedge Fund Strategies, Investment
managers maintain long and short positions in equity and
equity deriva...
• By contrast, in market-neutral hedge funds target zero
net-market exposure which means that shorts and longs
have equal ...
• In such a hedge fund strategy the stocks of two
merging companies are simultaneously bought and
sold to create a riskles...
Global Macro
• This hedge fund strategy aims to make profit
from large economic and political changes in
various countries...
• This particular Hedge fund strategy makes profit
from arbitrage opportunities in interest rate
securities.
• Here opposi...
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Hedge Fund Strategies

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For full text article go to : http://www.educorporatebridge.com/hedge-fund/hedge-fund-strategies/ This article on Hedge Fund Strategies, list down various strategies that are used by an Hedge fund Manager

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Hedge Fund Strategies

  1. 1. Hedge Fund Strategies
  2. 2. • In this type of Hedge Fund Strategies, Investment managers maintain long and short positions in equity and equity derivative securities. • It can range broadly in terms of exposure, leverage, holding period, concentrations of market capitalizations and valuations. • Basically the fund goes long and short in two competing companies in the same industry based on their relative valuations. Long/Short Equity
  3. 3. • By contrast, in market-neutral hedge funds target zero net-market exposure which means that shorts and longs have equal market value. • In such a case the managers generate their entire return from stock selection. • This strategy has a lower risk than the above strategy but at the same time the expected returns are also lower. Market Neutral
  4. 4. • In such a hedge fund strategy the stocks of two merging companies are simultaneously bought and sold to create a riskless profit. • This particular hedge fund strategy looks at the risk that the merger deal will not close on time, or at all. • Because of this small uncertainty, the target company's stock will sell at a discount to the price that the combined entity will have when the merger is done. • This difference is the arbitrageur's profit. Merger Arbitrage
  5. 5. Global Macro • This hedge fund strategy aims to make profit from large economic and political changes in various countries by focusing in bets on interest rates, sovereign bonds and currencies. • Investment managers analyze the economic variables and what impact they will have on the markets. Based on that they develop investment strategies.
  6. 6. • This particular Hedge fund strategy makes profit from arbitrage opportunities in interest rate securities. • Here opposing positions are assumed in the market to take advantage of small price inconsistencies, limiting interest rate risk. • The most common type of fixed-income arbitrage is swap-spread arbitrage.
  7. 7. Knowledge is like a line With no ends… So To know in detail about this article click on the link below http://www.educorporatebridge.com/hedge- fund/hedge-fund-strategies
  8. 8. https://www.facebook.com/CorporateBridgeGroup Be a part of edu CBA Family!!! Visit our website For Free Resources Like us on Facebook Follow us on Twitter https://www.educorporatebridge.com/ https://www.educorporatebridge.com/free-courses/ https://twitter.com/corporatebridge
  9. 9. Thank You!!! If you have found this Presentation to be useful, kindly Like Share Follow us!!! +

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