What Are Hedge Funds?

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


Please Help Members By Posting Answers For Below Questions

I want the sample question paper of po exam of sbi?

1641


What Are The Rights And Obligations Of The Buyer And Seller For The Call And Put Options?

621


Hello every1. I have attended the F1 visa for MBA. They have taken my Passport and given me Blue form and has advised me there is an Administrative Processing will be done. there is no time frame for it. Can some one tell whether my visa is refused or will i get the visa.

1829


What are the major Challenges being faced in the Banking sector?

572


Where will Olympics 2020 take place?

663






explian Mobile Banking?

625


Explain the different ways you can operate your accounts?

775


What is Job satisfaction?

719


Explain what is ROE?

665


Compare registered vs. Bearer debentures.

585


Where do you see the Euro in 2018?

654


Expand BSBDA.

657


How are local area banks different from small banks?

607


what is “Over the Counter Market”?

699


What Are The Types Of Visualizations?

693