Hedge fund: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Change 'generally' to 'often'.) |
imported>Doug Williamson (Expand. Source: Bank for International Settlements Statistical Release, May 2016; http://www.bis.org/publ/otc_hy1605.pdf) |
||
| Line 1: | Line 1: | ||
A higher risk investment fund often characterised by taking short positions as well as long positions. | A higher risk investment fund often characterised by taking short positions as well as long positions, including speculative positions in derivatives. | ||
Hedge funds operate in a wide range of markets, with a wide variety of strategies. | |||
Many of them are highly leveraged and are typically designed for more sophisticated investors. | |||
The 'hedge' part of their name originally suggested that they were hedged against any adverse effects from general falls or rises in markets, because of the taking of linked short and long positions by the earliest hedge funds. | |||
== See also == | == See also == | ||
* [[Derivative instrument]] | |||
* [[Long position]] | * [[Long position]] | ||
* [[Short position]] | * [[Short position]] | ||
* [[Hedging]] | |||
* [[Leveraged]] | |||
Revision as of 15:03, 5 May 2016
A higher risk investment fund often characterised by taking short positions as well as long positions, including speculative positions in derivatives.
Hedge funds operate in a wide range of markets, with a wide variety of strategies.
Many of them are highly leveraged and are typically designed for more sophisticated investors.
The 'hedge' part of their name originally suggested that they were hedged against any adverse effects from general falls or rises in markets, because of the taking of linked short and long positions by the earliest hedge funds.
