Hedge fund: Difference between revisions
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{{ | {{def|Hedge fund|/hɛdʒ fʌnd/|n|}}A couple of guys with a bright idea and a rented office in Mayfair. The Oxford English Dictionary says it is an “offshore [[investment fund]], typically formed as a private [[Limited liability partnership|limited partnership]], that engages in speculation using [[Margin lending transaction - SFTR Provision|credit]] or borrowed [[capital]].” | ||
That neglects to mention how much they charge, or that they talk a lot about [[alpha]] — even ''[[leveraged alpha]]'' — and have the [[Backtesting|back-tests]] to prove it — while doing a lot of [[vega]]. | |||
They also like shorting. This was a more fun game before the world got rocked on its axis by ''people on Reddit'', and the Wikipedia effect came to the financial services market. | |||
[[Vega]], by the way, is not a drug.<ref>OR IS IT? For those pursuing yield return, the lure of [[leverage]] can be a little addictive, which may or may not be a plot point in Hunter | [[Vega]], by the way, is not a drug.<ref>OR IS IT? For those pursuing yield return, the lure of [[leverage]] can be a little addictive, which may or may not be a plot point in {{author|Hunter Barkley}}’s forthcoming novel {{br|The ISDA Protocol}}.</ref> In fairness, in speaking of credit and borrowed capital, it does nod in [[Vega]]’s direction. | ||
===Hedge funds hang out with=== | ===Hedge funds hang out with=== | ||
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*[[Hookers]] | *[[Hookers]] | ||
{{sa}} | |||
*[[GameStop]] | |||
*[[Backtesting]] | *[[Backtesting]] | ||
*[[Greeks]] | *[[Greeks]] | ||
* | *[[AIFMD]] | ||
*[[Leverage]] | *[[Leverage]] | ||
*[[Synthetic prime brokerage]] | *[[Synthetic prime brokerage]] | ||
{{ref}} | {{ref}} | ||
{{c|Prime Brokerage}} | |||
Latest revision as of 13:30, 14 August 2024
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Hedge fund /hɛdʒ fʌnd/ (n.)
A couple of guys with a bright idea and a rented office in Mayfair. The Oxford English Dictionary says it is an “offshore investment fund, typically formed as a private limited partnership, that engages in speculation using credit or borrowed capital.”
That neglects to mention how much they charge, or that they talk a lot about alpha — even leveraged alpha — and have the back-tests to prove it — while doing a lot of vega.
They also like shorting. This was a more fun game before the world got rocked on its axis by people on Reddit, and the Wikipedia effect came to the financial services market.
Vega, by the way, is not a drug.[1] In fairness, in speaking of credit and borrowed capital, it does nod in Vega’s direction.
Hedge funds hang out with
See also
References
- ↑ OR IS IT? For those pursuing yield return, the lure of leverage can be a little addictive, which may or may not be a plot point in Hunter Barkley’s forthcoming novel The ISDA Protocol.