Answer Posted / sunny v
A hedge fund is an investment fund open to a limited range
of investors that undertakes a wider range of investment
and trading activities than long-only investment funds, and
that, in general, pays a performance fee to its investment
manager. Every hedge fund has its own investment strategy
that determines the type of investments and the methods of
investment it undertakes. Hedge funds, as a class, invest
in a broad range of investments including shares, debt and
commodities.
As the name implies, hedge funds often seek to hedge some
of the risks inherent in their investments using a variety
of methods, most notably short selling and derivatives.
However, the term "hedge fund" has also come to be applied
to certain funds that do not hedge their investments, and
in particular to funds using short selling and
other "hedging" methods to increase rather than reduce
risk, with the expectation of increasing the return on
their investment.
| Is This Answer Correct ? | 10 Yes | 2 No |
Post New Answer View All Answers
Explain what is actuarial report?
What do you know about plastic currency?
What Is Accrued Income?
What are the advantages and the disadvantages of equity finance and debt finance to a company raising finance and investors?
Why was Christiano Ronaldo in news in the year 2016?
What is PIN?
Explain unsecured loans.
WHAT ARE THE SECTIONS OF SOX THAT ARE RELATED TO INTERNAL CONTROL?
What Is Bank? What Are The Types Of Banks?
Define BPL?(explain in terms of numerical values-refer to planning commission website)
What Are Redeemable Debentures.?
Explain About The Super Administrator?
What Are Bearer Debentures?
What is the difference between Repo Rate and Reverse Repo Rate?
What is crossing?