Hedge fund: Difference between revisions
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{{ | {{a|glossary|}}We define a [[hedge fund]] as a couple of guys with a bright idea and a rented office in Mayfair. | ||
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 [[Margin lending transaction - SFTR Provision|credit]] or borrowed [[capital]].” | The Oxford English Dictionary says it is an “offshore [[investment fund]], typically formed as a private limited partnership, that engages in speculation using [[Margin lending transaction - SFTR Provision|credit]] or borrowed [[capital]].” | ||
Revision as of 14:56, 13 June 2019
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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
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.