2013年1月20日星期日

Hedge Funds Investment Strategies - Investing - Finance

There is a lot of confusion about many of the terms that are used by people in the financial markets. As a result of the financial and economic squeezes since the Lehman crash in 2008 the investment bankers have come in for a lot of approbation. Some of it may have been justified but by far the majority has been ill informed and media driven.

One of the sectors that has come under a lot of stick is that of hedge funds and hedge fund management generally. A hedge fund coach outlet online is not a fund that is open coach outlet store to the general public. It is very much restricted to institutions such as pension funds and High Net Worth individuals (who are deemed to be aware of what they are coach outlet usa committing themselves to.) Generally investment in a hedge fund is illiquid as the fund managers need time to get their investment strategy to work and a minimum term of investment of at least a year is generally imposed. Thereafter it may become open ended allowing withdrawal at specified periods.

A hedge fund is usually fairly unregulated and adopts aggressive strategies to maximise profit. Leveraging and shorting are just some of the strategies adopted to maximise growth and return on investment. An investment fund or mutual fund on the other hand is far more regulated as any one may invest and the regulator needs to protect them. The investment strategy set out at the time needs to be followed with some mutual funds adopting, by the terms it was chartered on, some higher risk strategies than other which may be very risk averse and only trade in gilts.

Luxif, a company trading in Luxemburg enjoys some flexibility while their hedge funds do have some light regulation attached to them Their strategies have over the past few years been shown to be successful and there is unlikely to be any change in the regulations in Luxemburg for the next 2 years.

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