Hedge Funds

Collectively, Hedge Funds are an eclectic group of Investment Funds, typically incorporating both Long and Short positions. They invest in a range of securities across a gamut of investment and trading strategies.

Hedge Funds come under Alternative Investments and cover many different strategies across a range of securities. Typically, the Manager of a Hedge Fund will define a trading strategy, developed over their careers. They will actively manage a universe of Securities, incorporating Long and Short Positions, level of gross and net exposure to the market and trading styles. Contrary to common belief, Hedge Funds do not try to get excessive returns and beat an Index. A true Hedge Fund will strive for superior risk-adjusted returns and measure their performance via various risk ratios, the Sharp Ratio. Common Hedge Fund strategies are Equity Long / Short, Relative Value, Global Macro, Event-Driven and Multi Arbitrage.