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Hedging and Hedge Funds

Hedge Funds – It’s really about Investing in the Manager

November 1, 2012 12:03 pm GMT+0  in Hedging and Hedge Funds

This is our concluding article on hedge funds, and a brief recap is in order. We looked at what hedge funds are, their different kinds, the pros and cons of investing in them, a hedge fund gone wrong (LTCM), one of the most successful hedge funds in history (Bridgewater) and the fees structure of aRead the Rest…

Hedge Funds – Where are the Customers’ Yachts?

October 30, 2012 8:18 am GMT+0  in Hedging and Hedge Funds

An oft-quoted nugget from financial literature goes as follows: A young man, about to be recruited into the financial markets, was being shown around New York and was shown some smart yachts anchored at the Battery. “Those are the yachts owned by the bankers, and there, those are the ones owned by the brokers,” saidRead the Rest…

The Story of Bridgewater Associates – Hedge Funds

October 28, 2012 5:59 pm GMT+0  in Hedging and Hedge Funds

From a January, 2008, newsletter by Bridgewater Associates cited in The New Yorker: “If the economy goes down, it will not be a typical recession.” Rather, it would be a disaster in which “the financial deleveraging causes a financial crisis that causes an economic crisis. . . . This continues until there is reflation, currencyRead the Rest…

Hedge Funds – The Story of Long Term Capital Management

October 26, 2012 10:15 am GMT+0  in Hedging and Hedge Funds

            This chapter is all about how a seemingly ‘can’t-do-wrong’ hedge fund went bust, and whose sheer size sent tremors down Wall Street and the financial markets, so much so that the government had to step in and take matters in hand to avoid a financial meltdown. Long Term CapitalRead the Rest…

Hedge Funds – Pros and Cons

October 24, 2012 8:05 am GMT+0  in Hedging and Hedge Funds

              Before you start looking at hedge funds as your ticket to financial nirvana, it would be useful to understand the arguments both for, and against investing in hedge funds. As they say, buyers beware! Hedge Funds – The Arguments “Against” One of the most common grounds for criticisingRead the Rest…

Types of Hedge Funds

October 23, 2012 2:24 am GMT+0  in Hedging and Hedge Funds

                  Now that you have an understanding of what hedge funds are, let’s look at their different kinds. Hedge fund categories and types Hedge funds may be broadly categorised as follows: Equity – directional hedge funds are focused on stocks and maybe long– or short– oriented. OnRead the Rest…

What are Hedge Funds?

October 20, 2012 9:09 am GMT+0  in Hedging and Hedge Funds

            That’s not a hedge fund! A real hedge fund has little to do with plants and vegetation, and plenty to do with the other green stuff – your investment dollars, a.k.a, greenbacks. Hedge Fund Definition and Description A hedge fund is in fact a specialized investment vehicle, but strangely,Read the Rest…