Hedge Funds Terms

  1. Investment Vehicle

  2. Investor Shares

  3. iTraxx LevX Indexes

  4. Jensen's Measure

  5. Jerome Kerviel

  6. Jim Cramer

  7. Julian Robertson

  8. Late-Day Trading

  9. Layered Fees

  10. Legging In

  11. Loan Credit Default Swap (LCDS)

  12. Lock-Up Period

  13. Long Hedge

  14. Long-Short Ratio

  15. Long-Term Capital Management - LTCM

  16. Long/Short Equity

  17. Long/Short Fund

  18. Longevity Derivatives

  19. Macro Manager

  20. Managed Account

  21. Management Buy-In - MBI

  22. Management Fee

  23. Manager Universe (Benchmark)

  24. MAR Ratio

  25. Market Neutral

  26. Market Neutral Fund

  27. Master Fund

  28. Master Trust

  29. Master-Feeder Fund

  30. Merger Arbitrage

  31. Michael Steinhardt

  32. Mini Madoff

  33. Minimum Investment

  34. Momentum Fund

  35. Mountain Range Options

  36. MSCI Inc

  37. Multi-Advisor Fund

  38. Mutual Fund Timing

  39. Myron S. Scholes

  40. Nano Cap

  41. Natural Hedge

  42. Net Exposure

  43. Net Short

  44. Noncommercial Trader

  45. Nonfarm Payroll

  46. Odd Date

  47. Offering Memorandum

  48. Offering Price

  49. Over-Hedging

  50. Participatory Notes

  51. Peak-To-Valley Drawdown

  52. Perfect Hedge

  53. Performance Fee

  54. Performance-Based Compensation

  55. Plaza Accord

  56. Ponzi Mania

  57. Pre-IPO Placement

  58. Prime Brokerage

  59. Private Banking

  60. Private Investment Fund

  61. Profits Interest

  62. Property Derivative

  63. Qualified Eligible Participant - QEP

  64. Quant Fund

  65. Quantitative Trading

  66. Redemption Suspension

  67. Relative Return

  68. Relative-Value Funds

  69. Retail Fund

  70. Retrocession

  71. Risk Arbitrage

  72. Robert C. Merton

  73. Roll Yield

  74. Run On The Fund

  75. Salomon Brothers

  76. Sanford J. Grossman

  77. Secondary Mortgage Market

  78. Securities Lending

  79. Shadow Banking System

  80. Side Pocket

  81. Sideways Market / Sideways Drift

  82. Silver ETF

  83. Smart Money

  84. Sophisticated Investor

  85. Sovereign Wealth Fund - SWF

  86. Speculation Index

  87. Spice Trader

  88. Square Position

  89. Sterling Ratio

  90. Sub-Advised Fund

  91. Subprime Meltdown

  92. Survivorship Bias

  93. Survivorship Bias Risk

  94. Syndicated Loan

  95. T. Boone Pickens

  96. Tail Risk

  97. Tainted Alpha

  98. Taking The Street

  99. Temporary New Account

  100. Total Annual Fund Operating Expenses

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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