1, relative value hedge fund can be said to be one of the most mainstream strategies in the hedge fund industry. Its main operation mode is to make profits by buying more and shorting, which leads to the convergence of asset values, while the goal is to reduce the market risk of portfolio and concentrate the risk on other factors (such as industry, scale and cost-benefit ratio). Risk arbitrage, merger arbitrage, fixed income arbitrage, convertible bond arbitrage, stock market long and short arbitrage and other funds are all relative value strategies. The similarity of these strategies is that managers are not guided by market trends, but seek investment returns unrelated to the target market. In addition, there are bulls and bears. Therefore, compared with traditional investment or single-trend hedge fund strategy, their risks are greatly reduced, and their past performance has been stable.

2. spread trading is the most important trading strategy in fixed income arbitrage strategy. The manager's main source of profit is the spread between bonds, or the arbitrage between bonds and derivatives, and profits or others depend on the spread.

3. Convertible bond arbitrage strategy is an operational strategy to earn low-risk profits by selling high and absorbing low when there is a price difference between convertible bonds and stocks. The specific operation mode of convertible bond arbitrage strategy is that when the price of convertible securities is lower than the conversion value, managers enter the market to buy convertible securities and short the underlying stocks at the same time; When the price of convertible securities is higher than the conversion value, the manager buys the underlying stock and sells the convertible securities short. This position design allows managers to profit from fixed-income bonds and stock positions at the same time, and the principal will not be affected by the market trend.