file - TABLE OF CONTENT Topic No Particulars Page No. 1...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
TABLE OF CONTENT Topic No Particulars Page No. 1 Executive Summary 5 2 Introduction & History 7 3 Basics of Hedge funds - Definitions 11 - Characteristics of Hedge funds 13 - Comparison with Mutual funds 18 4 Hedge Funds Fees 20 5 Structure of Hedge funds 23 6 Tools of Hedge funds 30 7 Classification of Hedge funds 36 - Directional 36 - Event driven and Relative Value 37 -Miscellaneous 41 8 Hedge Fund crisis 44 9 Regulatory Issues 52 10 Hedge Fund in India 54 11 Performance of Hedge funds 56 12 Conclusion 58 13 Bibliography 60 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
EXECUTIVE SUMMARY There is no exact definition to the term “Hedge Fund”; it is perhaps undefined in any securities laws. There is neither an industry wide definition nor a universal meaning for “Hedge Fund”. Hedge funds, including fund of funds, are unregistered private investment partnerships, funds or pools that may invest and trade in many different markets, strategies and instruments (including securities, non-securities and derivatives) and are not subject to the same regulatory requirements as mutual funds. The term “hedge funds”, first came into use in the 1950s to describe any investment fund that used incentive fees, short selling, and leverage. Over time, hedge funds began to diversify their investment portfolios to include other financial instruments and engage in a wider variety of investment strategies. However, hedge funds today may or may not utilize the hedging and arbitrage strategies that hedge funds historically employed, and many engage in relatively traditional, long only equity strategies. Other unregistered investment pools, such as venture capital funds, private equity funds and commodity pools, are sometimes referred to as hedge funds. Although all of these investment vehicles are similar in that they accept investors’ money and generally invest it on a collective basis, they also have characteristics that distinguish them from hedge funds. Hedge Fund Investment strategies tend to be quite different from those followed by traditional asset managers. Moreover, each fund usually follows its own proprietary strategies. Hedge funds have attracted significant capital over the last decade, triggered by successful track records. The global hedge funds volume has increased from US $ 50 billion in 1988 to US $ 750 billion in 2003 yielding an astonishing cumulative average growth rate (CAGR) of 24 %. The global hedge f und volume accounts for about 1% of the combined global equity and bond market Hedge funds are a growing segment of asset management industry and increasingly becoming popular not only with high net worth individual investors but also with institutional investors including university funds, pension funds, insurance and endowments. 2
Background image of page 2
Hedge funds are sometimes perceived to be speculative and volatile. However, not all funds exhibit such characteristics.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/16/2012 for the course ECON 101 taught by Professor Tom during the Spring '11 term at FH Joanneum.

Page1 / 58

file - TABLE OF CONTENT Topic No Particulars Page No. 1...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online