Hedge Fund Styles

Paper Summary:

This paper discusses the securities investments market, explaining the two types of investments; so-called traditional and non-traditional. The pape provides a comprehensive explanation of the industry with charts and diagrams to further illustrate the points.

Outline:
Introduction
Hedge Funds
Definitions
Structure
Transparency
Fees
Flexibility
Hedge Fund Industry
Historical development
Investors
Benefits and Risks
Benefits
Risks
Hedge Fund Styles
Market Neutral Group
Equity Market Neutral
Event Driven
Market Neutral Arbitrage
Long/ Short Equity Group
Aggressive Growth
Opportunistic
Short Selling
Value
Directional Strategies Group
Futures
Macro
Market Timing
Specialty Strategies Group
Emerging Markets
Income
Multi-Strategy
Fund of Funds
Evaluation
Conclusion
Appendix
References

From the Paper:

"There are two types of hedge funds, namely US and offshore. US-based hedge funds are mostly structured as Limited Partnerships and must register at the Securities and Exchange Commission (SEC). Offshore hedge funds have their headquarters outside the US and are typically located in tax heavens like the Bahamas or Ireland. (Appendix 1) They are structured as corporations , are less regulated and can therefore have more than only 500 investors.
"Transparency: The whole hedge fund industry is a mystery to outsiders. Only few people know much about hedge funds and those insiders work at them and never talk about it. Hedge fund managers are generally not forced to make performance information, asset allocations or earnings public. Investors support this fact while strategies can't be copied by others. They are satisfied with the available data and analyses about the fund and its holdings to decide whether to invest or not."

Sample of Sources Used:

• Francis, Jack C. & Ibbotson, Roger (2002) "Investments - A global perspective" published by Pearson Education, Inc., New Jersey (USA)
• Lake, Ronald A. (1999) "Evaluating and Implementing Hedge Fund Strategies", published by Euromoney Publications PLC, London (GB)
• ABACUS (04.01.2008) "Hedge Funds" available from: http://chinese-school.netfirms.com/abacus-hedge-funds.html Greenwich Alternative Investments (08.01.2008)
• "Hedge Fund Characteristics" available from: http://www.greenwichai.com/GenPages/gvhfindex48.aspx?vNode=8&vChild=8
• "Hedge Fund Strategy Definitions" available from: http://www.greenwichai.com/GenPages/gvhfindex42.aspx?vNode=8&vChild=2

More papers on Hedge Fund Styles:

• Term Paper # 98571 : "Hedge Funds and Financial Markets"
• Analytical Essay # 130240 : "Hedge Funds"
• Book Review # 32115 : "The Return of Depression Economics"

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