What are Hedge Funds and The Advantages of Investing in Them?

What are hedge funds? 

The term “hedge fund” has been used to describe a pool of private, professionally managed investments in a fund. They provide investors with the latitude to take investment strategies based on current market conditions to manage risk and outperform the market. Regardless of whether the stock market has increased or declined, the managers can “hedge” themselves by going long (if they foresee a market rise) or shorting stocks (if they anticipate a drop).

Choosing the right hedge fund

We offer access to many different investment mandates, such as:

1. Long/Short Equity: Longing stocks predicted to go long, shorting stocks predicted to go short.
2. Multi-Strategy: Also uses long and short positions, but often equal sized in order to minimize exposure in a volatile market.
3. Structured Credit: Re-packaging debt obligations into interest bearing securities.
4. Relative Value: Take advantage of small difference in the prices of like securities.
5. Merger Arbitrage: Buying and selling stocks of two merging companies ahead of the merger.
6. Global Macro: Basing purchases off the overall political and economic views of a group of countries.
7. Real Estate: Invests in real estate, usually through REITs or underperforming assets.
8. Special Situations: Opportunistic investments around company restructuring, spin-offs, asset sales, and other situations.