What is a hedge fund? Hedge fund refers to financial derivatives such as financial futures and financial options, which are combined with financial instruments to make profits. The following is the transaction mode of 202 1 hedge fund compiled by Bian Xiao. It is for reference only and I hope it will help you.
Hedge fund trading model
Hedge funds can be classified into four trading modes, namely, stock index futures hedging, commodity futures hedging, statistical hedging and option hedging.
1, stock index futures
Hedging of stock index futures refers to the behavior of taking advantage of the unreasonable price of stock index futures market, participating in the trading of stock index futures and stock spot market at the same time, or trading stock index contracts with different maturities and different (but similar) categories at the same time to earn the difference. Arbitrage of stock index futures can be divided into cash hedging, intertemporal hedging, cross-market hedging and cross-variety hedging.
2. Commodity futures
Similar to the hedging of stock index futures, commodity futures also have hedging strategies. When buying or selling a futures contract, they sell or buy another related contract and close both contracts at a certain time. It is similar to hedging in transaction form, but hedging is to buy (or sell) physical objects in the spot market and sell (or buy) futures contracts in the futures market; Arbitrage only buys and sells contracts in the futures market, and does not involve spot trading. Commodity futures arbitrage mainly includes cash hedging, intertemporal hedging, cross-market arbitrage and cross-variety arbitrage.
I. Introduction of hedge funds
HedgeFund's English name is Hedge Fund, which means "risky hedge fund". Originated in the United States in the early 1950s. The purpose of its operation is to use financial derivatives such as futures and options, as well as the operating skills of buying and selling different related stocks and hedging risks, which can avoid and resolve the risks of securities investment to a certain extent. 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.
Second, how to explain?
The so-called "hedging" is to "hedge" risks at a certain cost in transactions and investments in order to obtain low-risk or risk-free profits, which is called "arbitrage". There are many hedging methods, such as spot price difference hedging, near-far contract hedging, geographical hedging of the same product, related product hedging, gambling agreement and other derivatives. In a narrow sense, it is a trading strategy.
Third, the hedging strategy:
There are more than 20 investment strategies commonly used by hedge funds. Here are the seven most important trading strategies:
1, multiple short positions
2. Managing futures
3. Market neutrality
4, arbitrage type
5. Macro hedging
6. Direct sales when issuing bonds
7. Multi-strategy
The development of hedge funds
Alfred. Jones, a sociologist, writer and financial journalist, coined the word "hedge fund" in 1949, and he also established the structure of hedge fund for the first time, which was widely praised. In order to neutralize the overall fluctuation of the market, Jones adopted the method of buying bullish assets and selling bearish assets to avoid risks. He called this operation of managing the risk exposure of overall market fluctuation "hedging".
This portfolio is a hedge fund. Jones is also the first fund manager to adopt the hedge investment strategy of capital leverage and risk diversification and collect performance compensation. The history of hedge funds in China is very short, and the golden period can probably be counted from 20 13.
Through the detailed explanation of the above small series, I believe that the public has a general understanding of "hedge funds". This is something that high-end people "play". As a member of ordinary people, it is most practical to look after what is in your bowl. Keep your eyes open and beware of being fooled, so as not to suffer.
What is a hedge fund?
In the field of financial management, one of the hottest investment methods now is the fund. Compared with common money funds, the concept of hedge funds may be unknown to many people. Today, Bian Xiao will introduce you to what a hedge fund is.
To know what a hedge fund is, let's first understand the concept of "hedging". In finance, hedging means that one investment deliberately reduces the risk of another investment, in order to reduce the operational risk and still benefit from it. Hedge fund is a fund that uses hedging, transposition, hedging, hedging and other trading means to trade and obtain high profits.
Compared with traditional funds, hedge funds are risky funds. As a form of investment fund, hedge fund is also called hedge fund or hedge fund, which can be said to be a hedge fund.
Hedge funds mainly belong to private investment companies, and enjoy tax incentives in the form of limited cooperation or offshore enterprises. Each hedge fund has its own investment strategy and risks. Hedge funds have four trading modes: stock index futures hedging, commodity futures hedging, statistical hedging and option hedging.
Stock index futures hedging and commodity futures hedging are commonly used models. The symmetry of stock index futures refers to the behavior of earning the price difference by using the unreasonable price in the stock index futures market, including term hedging, inter-period hedging, cross-market hedging and boasting hedging. Commodity futures hedging and stock index futures are almost symmetrical.
Investment is a risky behavior, and because many hedge funds are private investment companies, the risk will be higher, and a careless one will suffer heavy losses. Therefore, when investing in hedge funds, we must think carefully, judge our own ability and market, and don't invest blindly.