Analysis of Hedge Fund Strategies
Following a practice-based risk factor perspective, a conditional linear factor model can be used to uncover and analyze hedge fund …
CFA
Multi-manager Strategies
Three main approaches are used to combine individual hedge fund strategies into a portfolio: creating one’s own mix of managers by …
Specialist Strategies
Portfolio managers for specialist hedge fund strategies use their knowledge of a particular market to pursue niche investment opportunities. Volatility Trading Once …
Opportunistic Strategies
Opportunistic hedge fund strategies are a broad class of investing approaches that attempt to extract profits using a wide range of …
Relative Value Strategies
Relative value strategies attempt to exploit valuation differences between securities. The most common securities used in relative value strategies are hybrid …
Event Driven Strategies
Event-driven (ED) hedge fund strategies take positions in corporate securities and derivatives that are attempting to profit from the outcome …
Equity Strategies
Long/Short Equity Long/short (L/S) equity managers buy equities of companies they expect will rise in value and sell short equities …
Overview of Hedge Fund Strategies
Characteristics of Hedge Funds: Legal/Regulatory Overview: Lower regulatory and legal constraints. Flexible Mandates—Few Investment Constraints: Given the relatively low legal and regulatory …
Hedging Multiple Foreign Currencies
A cross hedge (sometimes called a proxy hedge) refers to hedging with an instrument that is not perfectly correlated with the exposure being …
Currency Management for Emerging Market Currencies
The majority of investable asset value and FX transactions are in the six largest developed market currencies. Transactions in other …