1. Hedge Fund A fund that uses hedging means is called hedge fund, also known as hedge fund or hedge fund. It refers to a financial fund whose purpose is to make profits after financial derivatives such as financial futures and financial options are combined with financial organizations.
2. It is a form of investment fund, which means "risk-to-hedge fund". Hedge funds use various trading methods to hedge, transpose, hedge and hedge to earn huge profits. These concepts have gone beyond the traditional operation scope of preventing risks and ensuring benefits. In addition, the legal threshold for initiating and establishing hedge funds is much lower than that of mutual funds, which further increases their risks.
Historical overview of hedge funds:
1. Which one was the earliest hedge fund is still uncertain. During the great bull market in the United States in the 192s, there were countless such investment tools specifically for the rich. One of the most famous is the Graham-Newman Partnership Fund founded by Benjamin Graham and Jerry Newman.
2. When recording the brilliant achievements of Jesse Livermore, the novel Memoirs of a Stock Market Maker in 1923 described a speculative tool called "asset pool", which is very similar to the so-called "hedge fund" in form and function. Before Livermore, Bernard M. Baruch also ran an "asset pool". Later, he set up another door and made a fortune. He was called the "lone wolf on Wall Street" and became a politician.
3. In 26, Warren Buffett declared in a letter to the magazine of the Museum of American Finance that the Graham-Newman partnership Fund in the 192s was the earliest known hedge fund, but other funds may appear earlier.
4. Alfred W. Jones, a sociologist, writer and financial journalist, coined the term "hedge fund", and in 1949, he 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 used the method of buying bullish assets and selling bearish assets to avoid risks. He called this operation of managing the risk exposure of the overall fluctuation of the market "hedging".