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]].” | ||
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]]. | ||
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*[[Hookers]] | *[[Hookers]] | ||
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*[[Backtesting]] | *[[Backtesting]] | ||
*[[Greeks]] | *[[Greeks]] | ||
Revision as of 14:53, 12 December 2020
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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.
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.