Hedge fund
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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 — while doing a lot of vega.