Hedge fund: Difference between revisions
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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]]. | 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]]. | ||
[[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 Barkley’s forthcoming novel [[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=== | ||
Revision as of 13:51, 4 March 2019
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Prime Brokerage Anatomy™
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We define a hedge fund as 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.
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
- ↑ 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.