1. Hedge funds 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 institutions.
2. 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 initiating and establishing hedge funds is much lower than that of mutual funds, which further increases the risk.
Historical overview of hedge funds;
1, which is the earliest hedge fund, this is still uncertain. During the great bull market in the United States in the 1920s, 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. 1923' s novel Memoirs of a Stock Market Maker describes a speculative tool called "asset pool" when recording Jesse Livermore's brilliant achievements, which is very similar to the so-called "hedge fund" in form and function. Before Livermore, bernard baruch also managed an "asset pool". Later, he set up another portal and made a fortune. He was called "the lone wolf on Wall Street" and became a politician.
3. In 2006, Warren Buffett declared in a letter to the American Museum of Finance that the Graham-Newman Partnership Fund in the 1920s was the earliest known hedge fund, but other funds may appear earlier.
Alfred W. Jones is a sociologist, writer and financial journalist. He 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".