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Hedge Fund Careers

Hedge Fund Strategies: Short Selling

March 9, 2009

Short-selling by hedge funds attracted a lot of press attention in 2008, especially when the Securities and Exchange Commission, acting in concert with the U.K. Financial Services Authority, temporarily issued a ban to prohibit short selling in financial companies. Regulators wanted to “protect the integrity and quality of the securities market and strengthen investor confidence” […]

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Hedge Fund Strategies — Market Neutral

March 3, 2009

Market-neutral hedge funds are close to the true definition of a hedge fund, in that they “hedge” market risk with offsetting long and short positions. A market-neutral hedge fund manager, for example, will take long positions in a company’s stock that he thinks is undervalued, and take short positions in stocks that he thinks are overvalued. The […]

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What does it take to be a global macro hedge fund manager?

February 26, 2009

Last time we looked at global macro hedge funds, what they are and why they are so enormously powerful. What does it take to get a hedge fund job as a global macro hedge fund manager? Since the world it their oyster, a macro fund manager needs to know a lot about many different regions […]

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Hedge Fund Strategies: Global Macro

February 23, 2009

The term global macro is used to describe a group of hedge funds that take positions in markets around the world based on big, “macroeconomic” factors such as interest rate movements, currency markets, global stock and bond trends, commodity prices, political changes, government policies, and other very broad systemic factors. Global macros have been described […]

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Hedge Funds — Distressed Debt Investing

February 19, 2009

Last time we looked at the overall category of event-driven hedge fund strategies, which includes risk arbitrage and distressed debt investing. The second category, distressed debt investing, seeks to take advantage of special opportunities that arise when companies in financial trouble undergo restructuring. In these situations, the various classes of lenders in an organization (senior […]

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Hedge Fund Trading Strategies – Event Driven

February 17, 2009

An event-driven hedge fund strategy seeks to take advantage of special situations that change the value or price of an underlying asset. These special situations can include transaction announcements, such as mergers or acquisitions, or if a company is in financial distress. There are three sub-strategies within the event-driven approach: risk arbitrage, distressed debt investing, […]

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How Large is the Hedge Fund Industry Now?

February 12, 2009

Last time, we looked at the dramatic rise of the hedge fund industry since 2000. But 2008 was a tough year for hedge funds, to put in mildly. The credit crunch and economic downturn led to a sharp drop in assets under management, due to trading losses and massive redemptions by investors. This forced many […]

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