GEOG 1000 Lecture Notes - S&P 500 Index, United States Treasury Security, Doubling Time
Document Summary
Hedging: making an investment decision that reduces or minimizes risk in your. An aggressively managed portfolio much risk is taken in pursuit of higher. Uses advanced strategies such as leveraged, long, short and derivative positions in both domestic and global markets with a goal of generating high returns. Private investment partnerships open to a limited number of investors. Requires very large initial minimum investment; restricted to wealthy investors. Illiquid as they often require investors keep their money in the fund for at least one year. Hedge fund managers normally has much of their own cash in the fund also. Similarities: professional and active management, diversification, pooled investments. Differences: hedge funds take much more risk - use options and short-selling & flexible strategies, less regulated unlike mutual funds where prospectuses make it safer. No; the goal of hedge funds is to maximize return, not minimize risk.
