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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]].” | ||
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]]. | |||
They also like shorting. This was a more fun game before the world got rocked on its axis by ''people on Reddit'', and the Wikipedia effect came to the financial services market. | |||
[[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 | [[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 {{author|Hunter Barkley}}’s forthcoming novel {{br|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=== | ||
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*[[Hookers]] | *[[Hookers]] | ||
{{sa}} | |||
*[[GameStop]] | |||
*[[Backtesting]] | *[[Backtesting]] | ||
*[[Greeks]] | *[[Greeks]] | ||
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*[[Leverage]] | *[[Leverage]] | ||
*[[Synthetic prime brokerage]] | *[[Synthetic prime brokerage]] | ||
{{ref}} | |||
{{c|Prime Brokerage}} | |||