Opportunistic Strategies
Opportunistic hedge fund strategies are a broad class of investing approaches that attempt to extract profits using a wide range of …
level III
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 …
Tools of Currency Management
Futures or forward contracts on currencies can be used to obtain full currency hedges, although most institutional investors prefer to …
Active Strategies/Tactical Decisions
Active Currency Management Based on Economic Fundamentals This approach assumes that, in the long term, currency value will converge to …
Strategic Decisions
There are a variety of approaches to currency management, ranging from trying to avoid all currency risk in a portfolio …