Funds that use hedging transactions are called hedge funds, also known as hedge funds or hedge funds.

It refers to a financial fund that aims at profit after financial derivatives such as financial futures and financial options are combined with financial instruments.

It is a form of investment fund, which means "risk hedge fund". Hedge funds use various trading methods to hedge, transpose, hedge and hedge to make huge profits.

These concepts have gone beyond the traditional operation scope of preventing risks and ensuring benefits. In addition, the legal threshold for launching and establishing hedge funds is much lower than that of mutual funds, which further increases their risks.

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Mike saw that people engaged in finance were very profitable and wanted to set up a hedge fund for fun, so he applied to Goldman Sachs. Uncle Sam of Goldman Sachs said, OK, it's no problem to start a gay business. We don't have any rules here, but we must meet the only condition. You have to make sure that more than 65% of investors are rich, even if they are not Gates and Jobub, they have to be worth millions and earn more than 20W a year, otherwise we have to start a business.

Walking out of the bank, Mike thinks the world is beautiful, but wait, where is the money? He found Gates, and Gates said, You want me to give you money? You speak so beautifully. How much did you invest? How can I trust you if you are afraid to invest in your own fund? Mike felt reasonable, so he put his heart into it, took out all his $4 million and invested it in his own fund. Gates, this Xiong Haizi is so domineering that he should have some real skills. Then I might as well throw millions for fun. This second feature is called large individual shares.

Mike thought that it was not enough to have the money of this super-rich investor. Jack, who serves food at Starbucks next door, also wants to invest. Do I accept this kind of ordinary people to invest 12 thousand in my fund? No, first of all, I don't have enough people here. It's exhausting to deal with small customers one by one. Second, it's too much trouble to deal with so many people with this little money. Third, I still want a lot of money. Only by investing millions can my fund grow rapidly. Therefore, it is better to be willing but unable, or to target the rich. At the very least, people who want to invest in my fund start from 6.5438+0 million yuan, and I don't like it without it. This third feature is called high minimum.

Ok, all the clients have been recruited, and the fund size is 40 million. Mike has a beautiful heart, but he should plan ahead. There is an investor, Kevin, who is notorious. He often invests and then takes out his money after a week to entertain others. Anyway, it's millions. I went back and forth in the market and wanted me to die, so I made a rule to invest in my fund. You can't get it out in the first year, can you?

That's not enough. It will be safe within one year. What about a year later? Mike was not in trouble when the client wanted to withdraw his capital. So only a few designated days a year can be used to withdraw cash (maybe once a year). When this day comes, send an email to the customer in advance to remind it. It's time to divest. If you want to withdraw funds quickly, there will be no shop after this village. Please let us know in advance if you are interested. The fifth feature is called infrequent redemption.

The problem of money is solved, Mike thought. Well, I finally started investing and playing. As a "hedge chicken", don't think it really has anything to do with hedging. It's just a naming problem left over from history. As a hedge fund, I can freely use various investment strategies, such as long/short, event-driven, global macro and alienated securities. How exciting, this sixth feature is called diversity of investment. No one says that hedge funds can't simply buy some stocks for value investment, which is the same as public offering. )

Here comes the best part, collect the money! Mike tried (or pretended to try) to invest, only for the last dividend. If I make money, I will get 20% of the money. If I don't make money, I can't do it for nothing. This venue fee, labor fee, and my running errands are all hard, and I have to get at least 2% a year. This rule is almost a rule, and most hedge funds have similar rules for collecting money. This seventh feature is called 2/20 gain.

Mike can't stand the loneliness when he looks at other people's funds. The 40 million fund was not enough for others to use, so he went to tell Uncle Sam of the bank that you could lend me some money. I have a good idea to make a lot of money. Sam is an easy-going person. Without saying anything, he gave Mike 200 million dollars. This lever is called 5: 1. Therefore, this eighth feature is called lever.

Basically, most hedge funds contain the above eight characteristics, and it is hedge funds that meet these conditions, not literally "funds that adopt hedging strategies".

Finally, a misunderstanding that most people think hedge funds are terrible. For example, during the financial crisis, hedge funds in the news caused the stock index to plummet!

What is the general result of this sensation? In most cases, it is mainly caused by the interaction of the fifth and eighth characteristics. There are only a few days of abstinence in a year. During the panic period, such as the collapse of Lehman Brothers and the European debt crisis, customers collectively withdrew their capital on the first day, so hedge funds had no choice but to close their positions in a short time, and there was no cost ..... You can understand what this means considering that hedge funds are generally highly leveraged.

Story author: Chen Sirong

Link:/question/1990 22 14/ answer/15117313.

Source: Zhihu.