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. Amplitude

    The difference in price from the midpoint of a trough to the midpoint of a peak of a security. Amplitude is positive when calculating a bullish retracement (when calculating from trough to peak) and negative when calculating a bearish retracement (when calculating from peak to trough).
  2. Ascending Triangle

    A bullish chart pattern used in technical analysis that is easily recognizable by the distinct shape created by two trendlines. In an ascending triangle, one trendline is drawn horizontally at a level that has historically prevented the price from heading higher, while the second trendline connects a series of increasing troughs.
  3. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
  4. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  5. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
  6. Degree Of Financial Leverage - DFL

    A ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in earnings before interest and taxes (EBIT).
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