What Is Hedge Funds Btw?

February 15, 2009 by  
Filed under Investment

Similar to mutual funds but much more risky hedge funds do not stick with their name. Literally translated as follows, “hedge funds”, they are far from risk-free. Indeed, the management of these funds is not restrictive and allows more aggressive strategies: use leverage, short position, alternative products, structured products, arbitrage and derivatives. These funds accrue primarily to temporary market anomalies to earn money.

Launched in the middle of last century, these investments have shown a growing interest in advancing dramatically in the last decade. Often managed from offshore centers – the Cayman Islands head-on, lack of regulation of these funds allows managers enjoy greater freedom of action than traditional managers. The downside and they are at once transparent and less susceptible to fraud.