Hedge Funds Terms

  1. 3C1

  2. 3C7

  3. Absolute Return

  4. Absolute Return Index

  5. Accredited Investor

  6. Accrual Swap

  7. Activist Investor

  8. Airbag Swap

  9. Alternative Asset

  10. Alternative Investment

  11. Altiplano Option

  12. Appraisal Ratio

  13. Asset Management Company - AMC

  14. Asset Mix

  15. Asset Swapped Convertible Option Transaction - ASCOT

  16. Basis Risk

  17. Bear Stearns

  18. Bernard Madoff

  19. Block House

  20. Blow Up

  21. Bond Futures

  22. Buying Hedge

  23. Call On A Put

  24. Calmar Ratio

  25. Capital Gains Exposure - CGE

  26. Carl Icahn

  27. Carried Interest

  28. Cash Neutral

  29. Certified Financial Planner - CFP

  30. Chartered Alternative Investment Analyst (CAIA)

  31. Closed To New Accounts

  32. Closed To New Investors

  33. CMBX Indexes

  34. Collateralized Debt Obligation Cubed - CDO-Cubed

  35. Collateralized Debt Obligation Squared - CDO-Squared

  36. Comparison Universe

  37. Convertible Hedge

  38. Core Plus

  39. Cover

  40. Credit Default Contract

  41. Crowdfunding

  42. Currency Option

  43. Currency Overlay

  44. Currency Risk

  45. Dedicated Short Bias

  46. Dedication Strategy

  47. Deferred Load

  48. Delta

  49. Delta Neutral

  50. Derivatives Time Bomb

  51. Distribution Waterfall

  52. Dividend Recapitalization

  53. Doing the Reverse Desk

  54. Drawdown

  55. Enhanced Indexing

  56. Equity Market Neutral

  57. Event Driven Strategy

  58. Everest Option

  59. Exchange Distribution

  60. Exit Fee

  61. Fee Structure

  62. Feeder Fund

  63. Fixed-Income Arbitrage

  64. Flexi-Cap Fund

  65. Flow Derivative

  66. Foreign Exchange Market

  67. Foreign Institutional Investor - FII

  68. Forex Market

  69. Forex Market Hours

  70. Freight Derivatives

  71. Fund Manager

  72. Gamma Neutral

  73. Gate Provision

  74. George Soros

  75. Global Macro Strategy

  76. Hedge

  77. Hedge Accounting

  78. Hedge Fund

  79. Hedge Fund Manager

  80. Hedge Ratio

  81. Hedge-Like Mutual Fund

  82. Hedgelet

  83. Hedging Transaction

  84. Henry Paulson

  85. High-Frequency Trading - HFT

  86. High-Water Mark

  87. Hounding Analysts

  88. Howard-D'Antonio Strategy

  89. Hub And Spoke Structure

  90. Hurdle Rate

  91. Inflation Hedge

  92. Instant History Bias

  93. Instinet

  94. Institutional Fund

  95. Institutional Investor

  96. International Currency Markets

  97. Interpositioning

  98. Investment Company

  99. Investment Management

  100. Investment Product

Hot Definitions
  1. Family Limited Partnership - FLP

    A type of partnership designed to centralize family business or investment accounts. FLPs pool together a family's assets into one single family-owned business partnership that family members own shares of. FLPs are frequently used as an estate tax minimization strategy, as shares in the FLP can be transferred between generations, at lower taxation rates than would be applied to the partnership's holdings.
  2. Yield Burning

    The illegal practice of underwriters marking up the prices on bonds for the purpose of reducing the yield on the bond. This practice, referred to as "burning the yield," is done after the bond is placed in escrow for an investor who is awaiting repayment.
  3. Marginal Analysis

    An examination of the additional benefits of an activity compared to the additional costs of that activity. Companies use marginal analysis as a decision-making tool to help them maximize their profits. Individuals unconsciously use marginal analysis to make a host of everyday decisions. Marginal analysis is also widely used in microeconomics when analyzing how a complex system is affected by marginal manipulation of its comprising variables.
  4. Treasury Inflation Protected Securities - TIPS

    A treasury security that is indexed to inflation in order to protect investors from the negative effects of inflation. TIPS are considered an extremely low-risk investment since they are backed by the U.S. government and since their par value rises with inflation, as measured by the Consumer Price Index, while their interest rate remains fixed.
  5. Gilt-Edged Switching

    The selling and repurchasing of certain high-grade stocks or bonds to capture profits. Gilt-edged switching involves gilt-edged security, which can be high-grade stock or bond issued by a financially stable company such as the Blue Chip companies or by certain governments.
  6. Master Limited Partnership - MLP

    A type of limited partnership that is publicly traded. There are two types of partners in this type of partnership: The limited partner is the person or group that provides the capital to the MLP and receives periodic income distributions from the MLP's cash flow, whereas the general partner is the party responsible for managing the MLP's affairs and receives compensation that is linked to the performance of the venture.
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