The so-called hedge fund can be understood as a hedge fund and can also be called a hedge fund. The characteristic of this kind of fund is that it can use financial instruments to hedge risks and gain income. So what are the three profit models of hedge funds? Let's get to know each other. Profit model of hedge fund 1 In the hedging operation, the fund manager buys a put option with a certain price and timeliness after buying a stock. When the stock price falls below the option limit, the holder of the seller's option can sell the stock at the option limit, thus hedging the risk of stock price decline. The other is that the fund manager first selects some industries with bullish market, then buys high-quality stocks in this industry and sells inferior stocks in this industry at the same time. In this way, if the industry performs well, then the increase of high-quality stocks will inevitably exceed other stocks in the same industry; If industry stocks fall, then the decline of poor companies is bound to be greater than that of high-quality stocks. In either case, the gains outweigh the losses. The above is an introduction to the profit model of hedge funds. Based on the above, the most important thing is to pay more attention to the stock market and identify related industries when conducting fund hedging operations.