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.
The high leverage of investment effect, the complexity of investment activities, the private placement of financing methods, the concealment and flexibility of operation, hedge funds have become synonymous with a new investment model.
Based on the latest investment theory and extremely complicated financial market operation skills, we make full use of the leverage of various financial derivatives to take high risks and pursue high returns.
Extended data:
Hedge funds and securities investment funds for ordinary investors are not only quite different in terms of fund investors, fund raising methods, information disclosure requirements and supervision degree. There are also many differences in the fairness and flexibility of investment activities.
Securities investment funds generally have a clear definition of portfolio. In other words, there is a definite plan for the choice and proportion of investment tools. For example, a balanced fund means that stocks and bonds in the fund portfolio are roughly equally divided, and growth funds means that investments are concentrated on high-growth stocks.
At the same time, * * * mutual funds are not allowed to use credit funds for investment, while hedge funds are completely exempt from these restrictions and definitions. They can use all operational financial instruments and combinations to maximize the use of credit funds in order to obtain excess returns higher than the average market profit.
Hedge funds play an important role in speculation in modern international financial markets because of their high concealment, operational flexibility and leveraged financing effect.