Search results
Results from the WOW.Com Content Network
A hedge is an investment position intended to offset potential losses or gains that may be incurred by a companion investment. A hedge can be constructed from many types of financial instruments, including stocks, exchange-traded funds, insurance, forward contracts, swaps, options, gambles, [1] many types of over-the-counter and derivative products, and futures contracts.
The word "hedge", meaning a line of bushes around the perimeter of a field, has long been used as a metaphor for placing limits on risk. [9] Early hedge funds sought to hedge specific investments against general market fluctuations by shorting other, similar assets.
A hedge fund offers people the chance to invest in a portfolio, with returns based on how well the portfolio’s underlying investments do. The fund itself makes most of its money from the fees ...
A hedge fund might sell short one automobile industry stock, while buying another—for example, short $1 million of DaimlerChrysler, long $1 million of Ford.With this position, any event that causes all auto industry stocks to fall will cause a profit on the DaimlerChrysler position and a matching loss on the Ford position.
A hedge fund manager decides how pooled funds should be invested in order to meet certain objectives. Hedge fund managers can be … Continue reading → The post What Is a Hedge Fund Manager ...
Hedge funds can deliver above-average returns to investors who are comfortable taking more risk in their portfolios. Aside from the fact that they don’t always deliver, there’s just one catch ...
A stock fund, or equity fund, is a fund that invests in stocks, also called equity securities. [1] Stock funds can be contrasted with bond funds and money funds . Fund assets are typically mainly in stock, with some amount of cash , which is generally quite small, as opposed to bonds , notes, or other securities .
Hedge funds usually invest in a number of companies, so when you put your money into a hedge fund, you’re buying a proportional share of its portfolio. As a venture capital investor, you invest ...