Market-neutral strategic investment principle: operate both bulls and bears. Long buy a basket of stocks, short the index target (that is, short the Shanghai and Shenzhen 300 stock index futures in China), and strive to hedge the systemic risk β of the portfolio (β is not equal to 0, which is a multi-short strategy) to obtain excess return α. The income of the whole fund depends on the fund manager's ability to create excess income.

Strategic advantages of market neutrality strategy;

Trends have nothing to do with the stock market. The advantage of this strategy is that the systemic risk β of the portfolio is offset, and the performance trend of the fund will be independent of the market index. Therefore, regardless of the market environment, it has the ability to obtain positive returns and has good asset allocation value.

Market neutral strategy is suitable for investors;

Steady investors. Market-neutral funds can effectively resist systemic risks in the stock market to some extent. In the environment where A shares are constantly bottoming out, market-neutral products can make you more calm and calm when the cliff-like plunge occurs.

Market neutral strategic risk:

Because the fund's return depends on the portfolio's ability to create excess return α, its selected stocks will not perform as well as the index, and there will also be losses. In addition, when the equity market is in an obvious upward trend, the traditional stock products have stronger ability to obtain income, while the positive income of market neutral funds is relatively limited.

The second of the seven strategies of hedge funds: arbitrage

Arbitrage strategy investment principle: refers to the trading strategy of using the unreasonable price relationship between different assets or different markets to buy undervalued assets and sell overvalued goods, so as to obtain the spread income in the process of returning the price to a reasonable level in the future. Arbitrage strategy is aimed at pricing deviation, which can be used no matter what state the market is in, and its income has low correlation with the market.

When does arbitrage trigger?

& gt The price difference of the same asset in different markets is too great, which goes against law of one price.

& gt The pricing difference between two assets with the same or similar value is too large (such as soybean and soybean oil, stock index futures contracts with different maturities).

& gt An asset with a known future price, whose current price is too different from the price discounted at the risk-free interest rate (futures and spot).

What are the risks of arbitrage funds?

Tracking error

When constructing the spot portfolio of Shanghai and Shenzhen 300 Index for arbitrage, there will be deviation between the spot portfolio and the underlying stock index due to the minimum subscription share limit, the adjustment of stock index weight and the inability to buy and sell multiple stocks at the same time.

Impact cost

Impact cost refers to buying and selling securities on a large scale quickly in arbitrage trading, but failing to make a deal at a predetermined price, thus paying more costs.

liquidity risk

When buying and selling spot stock portfolio, you will encounter the risk of stock suspension, price limit and inability to trade.

technical risk

Because arbitrage opportunities are often fleeting, it is impossible to manually place an order for both spot portfolio and stock index futures, so it is necessary to choose an efficient and stable trading system.

Strategic capability risk

If the amount of arbitrage funds is too large, the effect of arbitrage strategy will be greatly reduced due to the restrictions on the number of positions held by the exchange.

Arbitrage fund-how to choose?

Hardware facilities

Market arbitrage opportunities are fleeting, so it needs high-speed computer software and hardware support to capture arbitrage opportunities quickly. Even in case of power failure and other emergencies, it is necessary to ensure the normal operation of arbitrage equipment. Therefore, it is appropriate to choose managers with better hardware conditions.

Strategic ability

If the arbitrage fund exceeds the capacity of fund strategy, the arbitrage efficiency will be greatly reduced. Therefore, investors should avoid choosing products with too many arbitrage products.

Historical achievements

Observe whether the historical performance of products is stable and upward, and avoid products with sharp fluctuations in performance. Advantages and disadvantages of domestic multi-short warehouse strategy.

The third of the seven strategies of hedge funds: private placement

Private placement strategy: a sub-strategy in event-driven strategy. At present, domestic event-driven strategy funds are mainly engaged in private placement, so they are divided into one category separately. This strategy is usually to participate in the private placement of listed companies and withdraw from the secondary market after the private placement is lifted, so as to obtain income. In addition to private placement, event-driven strategy investment is also often used to invest in companies with special circumstances, such as major restructuring, mergers and acquisitions, spin-offs, broken networks, etc.

Private placement of shares: refers to the non-public offering of shares by listed companies to a few qualified specific investors. At present, the number of issuers is required to be no more than 65,438+00, and the issue price is not less than 90% of the market price in the 20 trading days before the announcement. The issued shares shall not be transferred within 65,438+02 months (the major shareholder subscribes for 36 months).

The average income of private placement is high: historically, the average income of private placement is very high. Since 2006, the average return of private placement of shares is 55.8 1%, and the average excess return reaches 52.78%. Even in the bear market in 2008, the average income of private equity issued in that year reached 68.88%.

Breaking risk of private placement;

Investing in a single private equity may lead to a break and a loss. From June 5438+ 10, 2007, Jean Nickel Company conducted a private placement. By the time 5438+ 10 was listed in June 2008, its share price had fallen by 80.6 1% compared with the private placement price, making it the most loss-making private placement investment in history.

Hedge fund private placement avoids the risk of fixed stock break;

Private placement hedge funds-through private placement hedge funds, investing in multiple private placement stocks will spread risks, and the probability of breaking will be greatly reduced, and the probability of obtaining the average income of the industry will be higher.

How do investors choose private hedge funds?

& gt What is the ability of fund managers to obtain a fixed share?

The range of shares in private placement is small, good fund managers have information resources to obtain fixed shares, and the fixed shares purchased also have a discount advantage.

& gt Do fund managers have the ability to screen high-quality fixed-income stocks?

Private equity stocks are mixed, and the returns are uneven, so it is sometimes important to study and screen good fixed-income stocks.

& gt Do fund managers hold scattered shares?

A single fixed share has the risk of breaking, and holding more fixed shares can spread the risk, and it is more likely to obtain the average high income of the industry.

& gt Is there an idle period for fund assets?

A single fixed share does not always exist. Some funds may not find a fixed share after raising, resulting in idle funds. Therefore, it is better to choose a fund that already has potential stock holdings.

The fourth of the seven strategies of hedge funds: macro hedging

Macro hedge investment principle: on the basis of fully analyzing the macro-economy, invest in stocks, foreign exchange, currencies and commodities, and at the same time increase leverage to expect high returns.

Advantages of macro hedging strategy: the macro strategy has low correlation with stock market and bond market, flexible investment, and can also create income when the stock market is depressed.

Conservative: mainly using zero leverage, mainly seeking medium and long-term opportunities by grasping the law of economic cycle, and most of the customers are large institutions such as retirement pension funds and insurance funds;

Positive: derivative financial products are used to increase the leverage of positions and frequently adjust positions, mainly to find short-term investment opportunities, and the investment risks are also greater. Most macro hedge funds fall into this category.

The Potential Risks of Macro Hedging Strategy

Trading risk: Due to the existence of leverage, the fluctuation of financial instrument prices and market interest rates is further amplified. When the futures part touched the liquidation line, it was forced to close the position because the additional margin was not timely enough.

Liquidity risk: the market position cannot be withdrawn at a better price due to liquidity problems, resulting in a sharp withdrawal of the net value when withdrawing.

How to select macro hedge strategy funds?

Macroeconomic grasp

Macroscopically speaking, fund managers' grasp of the macro-economy. For example, the withdrawal of QE in the United States has greatly increased the expectation of the appreciation of the US dollar and induced a large number of hot money to evacuate from emerging markets to the United States, which led to the appreciation of the US dollar. At this time, the US dollar exchange rate may be a good investment direction.

Investment style and objectives

The leverage ratio of foreign exchange and commodity markets is high, while the stock market is relatively low. Choosing products with different investment targets represents investors' different risk tolerance.

What is the historical performance?

Review whether the historical performance of products is stable and upward, whether the maximum withdrawal is within the tolerable range, and avoid products with continuous decline in performance and products with fluctuations that are not within the tolerable range.

The fifth of the seven strategies of hedge funds: multiple short positions (multiple short positions)

Principle of multi-short investment strategy: buy funds into a series of stocks, call options and futures to form long positions, short options, spot and futures to form short positions, the market value difference between long positions and Z short positions forms market positions, and different market positions form different multi-short positions. Foreign long and short positions mainly operate long and short on different stocks in the same sector at the same time. Fund managers believe that different stocks in the same sector will gain more in a bull market than in general, and those with poor performance will lose more in a bear market than those with good performance, so buying stocks with good performance and selling stocks with poor performance can make money in both bull and bear markets.

Advantages and disadvantages of domestic multi-empty warehouse strategy

The benefits and risks may be magnified.

Because the multi-short position strategy can use a small amount of margin to attach a certain multiple of leverage in the futures market and expand the amplitude of net worth, the income may double or die in the short term.

Flexible position

When the market changes, long and short positions can be adjusted in time to conform to the market.

The right investor

At present, many short-selling funds in China are high-risk and suitable for radical investors who are willing to bear drastic fluctuations in performance; At present, there are few products with low risk and short positions. At present, Yingfeng's quantitative investment is hedged at 1 period.

Six of the Seven Strategies of Hedge Funds: Managing Futures

Managing futures investment strategy: managing futures fund CTA, also known as commodity trading consultant. Only invest in: financial futures, options and derivatives, fixed income and interest rates, foreign exchange and currency, metal and commodity futures.

Managing futures strategies, hedge funds, and the right investors.

Investors with moderate risk tolerance and investors who need to allocate assets other than stocks.

Characteristics of management futures strategy

The risk span is large-futures leverage, and the risk can be high or low.

Flexible-You can go long or short.

Independent from the traditional market-negatively related to the stock market and bond market.

How to choose hedge funds for managing futures strategy?

Past performance

Observe whether the historical performance of products is stable and upward, and avoid products with sharp fluctuations in performance.

Team stability

Whether the research team and quantitative team are stable, whether the quantitative fund manager has rich quantitative experience in the past, and whether the company's quantitative team has complete quantitative hardware facilities.

risk control

Whether the fund company has strict downside risk control system and compulsory liquidation system, and whether it is acceptable for investors with the greatest performance in the past to withdraw.

investment strategy

In the market with clear trend, products with trend tracking and counter-trend strategy perform better, while in the volatile market, products with pattern recognition and multi-strategy perform better.

Seven strategies of hedge funds: multi-strategy

Multi-strategy investment principle: this strategy operates hedge funds by combining various strategies of hedge funds. Every hedge fund strategy has its advantages and disadvantages. Through the combination of multiple strategies, the risk of a single strategy can often be smoothed and the performance tends to be stable.

Suitable for stable long-term investors.

Compared with other single strategies, multi-strategy is more stable, can stabilize the fluctuation of different strategies, and is suitable for stable investors. In addition, the short-term performance of multi-strategy hedge funds may not be outstanding, but the long-term performance is stable and suitable for long-term holding.

How to choose a multi-strategy hedge fund

Past performance and risk control of fund managers

Whether the historical performance is stable and upward, and whether the downward control of net worth is good.

Do fund managers have the ability to change their strategies in time?

Although fund managers hold a variety of strategies, when to use which strategy and increase the proportion of which strategy still test the strength of fund managers.