Abstract
This paper looks at the history of pooled monetary funds. It discusses the difficulties experienced throughout recent history to get this concept publicly accepted but how, now, this is a very popular institution. It examines one example of this concept - Hedge funds, and the difficulties faced in marketing this concept in Europe.

From the paper:

"The idea of pooling money together for the purpose of investing started in Europe in the mid-1800s. The first pooled fund in the United States was created in 1893 for the faculty and staff of Harvard University. On March 21, 1924, the first mutual fund was started in the United States. It was called the Massachusetts Investor?s Trust. It grew from $50,000 in assets in 1924 to $392,000 one year later with approximately 200 shareholders. Today there are over 10000 in mutual funds in the US today totaling around $7 trillion dollars with approximately 83 million investors, according to Dustin Woodard at About.com."

Tags:investor, shares, mutual, fund, markerts, confidence, rates, product, strategy, development, capital, industry, returns, liquidity, investment

Abstract
This paper examines hedge funds from both the risk model perspective and the regulatory perspective. The paper provides an analysis of the typical hedge fund investment strategy and how this strategy is overly harmful and destabilizing to traditional and regulated financial markets. The paper explains that typically, hedge funds invest with a short-term investment horizon and rely on market volatility; i.e. rapid price fluctuations, in order to capitalize on their investment strategies.

From the Paper
"This document examines hedge funds from both the risk model perspective and the regulatory perspective. An analysis is made of the typical hedge fund investment strategy and how this strategy is overly harmful and destabilizing to traditional and regulated financial markets. Typically, hedge funds invest with a short-term investment horizon and rely on market volatility; i.e. rapid price fluctuations, in order to capitalize on their investment strategies."

Tags:hedge, funds, regulatory

Abstract
This paper outlines the main characteristics of hedge funds and looks at how these differ from traditional investment funds. There are over a dozen investment techniques used in hedge fund industry in order to make returns. The paper describes four of them: opportunistic, market neutral - securities hedging, global macro and value investment style. The great size of the assets under management of the hedge fund suggests that they are important clients of investment banks and can play a significant role in the financial markets. The paper also takes a closer look at how investment banks work with hedge funds and what impact the hedge funds have on the overall stability of the financial markets.

Outline:
Introduction
An Overview of Hedge Funds, Comparison to Traditional Funds and Their Importance as Clients of Investment Banks
Recent Expansion of Hedge Funds
Hedge Funds and Financial Stability
Some Risks Associated With Hedge Funds
Regulation of Hedge Funds
Hedge Funds' Investment Styles
Conclusion

From the Paper
"The definition of a hedge fund is an investment institution, which actively manages its portfolio using a large number of strategies and leverage in order to produce high returns, which are measured in absolute terms and/or over a specified benchmark, such as FTSE100 in the UK or the DOW30 in the US. Hedge funds are similar to the traditional investment funds in that they are both pooled and professionally managed, however, there is a number of differences. Unlike traditional funds HFs are practically unregulated and have the flexibility in their trading and investment strategies, e.g. go short when markets are bearish or when a manager thinks that an asset is overpriced and is due a correction (source: Investopedia)."

Tags:investment financial stability stock markets trading strategies regulation

Abstract
The paper explains how hedge funds work, how they can have substantial sway over markets and why many pension funds invested heavily in hedge funds. The paper then discusses how many hedge funds invested heavily in the sub-prime mortgage market, that led to a volatile situation that devastated the pensions of many middle class workers, crippled mortgage lenders and had a broad effect on the economy. The paper considers the argument that homebuyers and investors are not completely to blame for the worldwide credit crunch but contends that people need to take personal responsibility for their own finances. The paper maintains that by bailing them out, we would only be increasing the likelihood that a bubble will happen again when the next get-rich-quick financial fad pops up.

From the Paper
"Hedge funds are private investment funds that charge a performance fee of usually around twenty percent. Many legal rules that apply to other types of funds such as mutual funds do not apply to hedge funds. Instead, hedge fund managers write up contracts that spell out the rules governing each particular fund. This allows hedge fund managers to follow more aggressive investment strategies than is legally possible for normal mutual funds. These funds often hedge their investments against negative developments in equity and other markets because the common goal is to create returns that are not necessarily in line with those of the larger financial markets."

Tags:credit, sub-prime, mortgages, pensions, homebuyers, investors

Abstract
The paper explains the concept of hedge funds and describes their legal structure, fee structure and classification. The paper discusses how, before the regulation of hedge funds, managers could bypass laws related to insider trading and use practices that would not be tolerable in other investment arenas. The paper looks at the "Goldstein vs. Securities and Exchange Commission" (SEC) case and its outcome that has improved the regulatory framework of the SEC.

Outline:
Introduction: What Is a Hedge Fund?
Legal and Fee Structure of Hedge Funds - Platform for Insider Trading
Regulating Hedge Funds

From the Paper
"The original concept of a hedge fund is that it offer plays against the market, using short-selling, futures and other derivative products. Hedge funds provide one of the most diversified market activities within investment strategies since it can use a myriad of financial instruments and positions to reduce risk and maximize gains . Hedge funds minimize risk and the volatility of that risk via strategic diversification by selling long or short, buying and selling securities, engaging in opportunities on the futures or bond market. The development of a hedge fund was based on getting an absolute return in all directions. In practice this means that hedge fund managers seek seed freedom to achieve high absolute returns and wish to be rewarded for their performance."

Tags:investment, assets, fees, offshore, returns, risks

Abstract
This paper explains that hedge funds, large private investment pools that are not limited by the restrictions put on other types of investment vehicles, are allowed to take short positions in securities and to concentrate their investments in a particular firm, industry or sector. The author points out that, in the case of LTCM, the basic idea was hedging: over time, the value of long-dated bonds issued a short time apart would tend to become identical, and by a series of financial transactions (essentially amounting to buying the cheaper 'off-the-run' bond and short-selling the more expensive, but more liquid, 'on-the-run' bond), it would be possible to make a profit as the difference in the value of the bonds narrowed when a new bond came on the run. The paper concludes that there is no way to hedge away all the risk, especially when tough economic times materialize; therefore, a solid capital base must be a requirement in order to weather negative economic conditions, and hedge funds must be regulated.

Table of Contents
Introduction
Background of LTCM
The Collapse of LTCM
Results of the Collapse of LTCM
The Future of LTCM and Hedge Funds
Conclusion

From the Paper
"With regard to leverage, the LTCM Fund's balance sheet on August 31, 1998, included over $125 billion in assets. But, even using the more generous January 1, 1998, equity capital figure of $4.8 billion, this level of assets still implied a balance-sheet leverage ratio of more than
25-to-1. The extent of this leverage implied a great deal of risk. The LTCM Fund's exposure to certain market risks was several times greater than that of the trading portfolios typically held by major dealer firms. The LTCM Fund's size and leverage, as well as the trading strategies that it used, made it extraordinary vulnerable to a down turn in financial market conditions."

Tags:regulation, bond, risk, difference, base

Abstract
This study looks carefully at hedge funds and how they work, as well as pension funds and how they work, in order to determine whether they are actually a good fit for one another. The paper analyzes data to show the performance of both of these vehicles and explain their inner workings more carefully. The paper draws both quantitative and qualitative information from the data and reaches the conclusion that adding small levels of hedge funds into pension funds does in fact improve (or at least not appreciably harm) the efficiency of the pension funds in terms of the risk and return profile. The paper includes the descriptions of the hedge funds used in this paper as appendices. This paper contains figures, tables, formulas and equations.

Outline:
Abstract
Chapter 1: Introduction
Chapter 2: Review of Literature
Chapter 3: Return and Risk Measurement Methods
Chapter 4: Empirical Analysis
Chapter 5: Conclusion

From the Paper
"There has been dramatic growth in hedge funds over the last ten years. This growth is shown both in terms of assets under management and in the number of funds. The assets under management in hedge funds have grown from US$ 40 billion in 1990 to US$ 600 billion in 2003 (Schachter, 2004) to over US$ 2.65 trillion as of April 2008, according to Hedge Fund Intelligence (2008). The numbers of hedge funds that currently exist, however, is difficult to obtain. In 2003, industry reports estimated that there were around 6,000 hedge funds worldwide. Both Schlachter (2004) and Lhabitant (2004) concurred with those figures. According to Hamilton (2008), there were 10,000 registered hedge funds in the Cayman Islands alone as of June 2008.
"Over the last few years the growth of hedge funds has been dramatic, and the hedge fund industry has experienced a number of changes as the motives to invest in these vehicles have evolved over time. In the 1990s, according to Borla and Masetti (2003), money managers from big institutions defected to the world of hedge funds in pursuit of an ostentatious life style. They invested a large portion of their own financial wealth into their own funds in the hopes of generating a high return by finding niches to generate so called 'absolute returns' while limiting their portfolio risk. The effectiveness of these processes however is questionable due to the opacity of the hedge fund industry."

Tags:risk, return, investment, securities, options, futures

Abstract
The purpose of this research study is to attempt to discern the impact that the economic slump in the United Kingdom has had on the United Kingdom hedge funds industry. It focuses on answering specific questions relating to Hedge Fund investment in the United Kingdom and uses methodology of a qualitative nature conducted through a review of literature and professional and business reports. Findings include those which demonstrate that greater accountability will be an issue in hedge fund investment by investors. The paper also includes some tables of figures that provide further information and finishes with some recommendations for further study.

Outline:
Introduction
Research Questions
Terms & Definitions
Significance of the Study
Hypothesis
Expected Results
Organization of the Rest of the Study
Literature Review
Research Methodology
Analysis, Tests and Results
Discussion and Evaluation
Conclusions of the Study
Limitations of the Study
Recommendations of the Study

From the Paper
''It is additionally related that pushing for tougher hedge fund rules are German Chancellor Angela Merkel, French President Nicolas Sarkozy and EU Internal Market Commissioner Charlie McCreevy...as the credit crisis ravages Europe's economy." (Arab Times, 2009) The argument posed by hedge funds is that there has been very little in the way of systemic risk posed by hedge funds "despite the often heavy losses and huge money outflows, while some far more highly leveraged banks have collapsed or been forced to seek state help." (Arab Times, 2009) Leverage is stated to magnify the profits of the hedge funds also magnifies their losses and presently leverage is stated to be lower than prior to the crisis as banks have "reduced their balance sheets." (Arab Times, 2009)
''It is stated that in October 2008 "the average prime broker leverage fell to around 1.15 times from around 1.9 times in October of the previous year according to the data from the UK Financial Services Authority (FSA). That is stated to be "well below leverage at Long Term Capital Management" which upon collapsing "posed a grave threat to the global financial system as the funds leverage was estimated to have been approximately 20 to 30 and rising to 100 in one point. It is held that borrowing "is likely to rise again as banks return to this lucrative business." (Arab Times, 2009)''

Tags:outflows, investing, banks

Abstract
In this article, the writer considers hedge funds, including what they are, who can participate and the outlook for regulation of hedge funds. The writer looks at how hedge funds differ from traditional funds, and how they affect the market.

From the Paper
"The stock market grew as a favorite investment vehicle for millions of Americans during the last quarter of the twentieth century. Not only were Americans investing directly in stocks but mutual funds also increased substantially both in size and in number. The mainstream media began covering the stock market more closely and stories of insider trading as well as how to choose mutual funds filled the airwaves and consumer as well as investor publications. The WorldCom and Enron scandals were viewed not only from the ..."

Tags:hedge fund, accounting, regulation, stock market

Abstract
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."

Tags:performance, strategies, portfolios