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Hedge fund: Difference between revisions
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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 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]].” | ||
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]]. | ||