Hedge Funds Tutorial
AAA
  1. Hedge Funds: Introduction
  2. Hedge Funds: Structures
  3. Hedge Funds: Strategies
  4. Hedge Funds: Characteristics
  5. Hedge Funds: Performance Measurement
  6. Hedge Funds: Risks
  7. Hedge Funds: Why Choose Hedge Funds?
  8. Hedge Funds: The Due Diligence Process
  9. Hedge Funds: Funds Of Funds
  10. Hedge Funds: Conclusion

Hedge Funds: Introduction

By Dan Barufaldi

Although hedge funds usually get negative media focus, many hedge funds are actually very good investments and can be an integral part of a well-diversified portfolio. But what exactly is a hedge fund, and what are some of the factors one should know about hedge funds before making an investment? In the following tutorial, we'll introduce basic hedge fund characteristics and strategies as well as some simple guidelines for evaluating hedge funds. By no means should this tutorial form the basis of any due diligence process for investing in hedge funds, but it can serve as a guide leading to more fruitful conversations with an investment manager that has experience with these vehicles.

Hedge funds can be very risky investments and many investors have been burned by huge hedge fund blow-ups. On many occasions, investors follow the herd mentality of chasing returns, plunging more and more money into a high-performing fund, without regard for how the performance was obtained and – more important – whether the performance can be repeated in the future.

In this tutorial, we won't expect to create an expert hedge fund analyst out of you, but if you are new to hedge funds or you or your advisor are considering investing in hedge funds, this tutorial will give you some basic knowledge of how they are structured, their strategies and characteristics, as well as how to use them in your portfolio. (For more background, read Introduction To Hedge Funds – Part One and Introduction to Hedge Funds – Part Two.)

Hedge Funds: Structures

  1. Hedge Funds: Introduction
  2. Hedge Funds: Structures
  3. Hedge Funds: Strategies
  4. Hedge Funds: Characteristics
  5. Hedge Funds: Performance Measurement
  6. Hedge Funds: Risks
  7. Hedge Funds: Why Choose Hedge Funds?
  8. Hedge Funds: The Due Diligence Process
  9. Hedge Funds: Funds Of Funds
  10. Hedge Funds: Conclusion
RELATED TERMS
  1. Tactical Trading

    A style of investing for the relatively short term based on anticipated ...
  2. Maximum Drawdown (MDD)

    The maximum loss from a peak to a trough of a portfolio, before ...
  3. Gross Exposure

    The absolute level of a fund's investments.
  4. Exchange Traded Derivative

    A financial instrument whose value is based on the value of another ...
  5. Hedge Fund

    An aggressively managed portfolio of investments that uses leveraged, ...
  6. Dividend

    A distribution of a portion of a company's earnings, decided ...
  1. What is the purpose of a hedge fund?

    Find out what a hedge fund is, how it is set up and why it is different than other forms of investment partnerships like ...
  2. How does beta measure a stock's market risk?

    Learn how beta is used to measure risk versus the stock market, and understand how it is calculated and used in the capital ...
  3. How much of a diversified portfolio should be invested in the electronics sector?

    Learn how investing style determines how much of a diversified portfolio an investor chooses to allocate to the electronics ...
  4. What are some common questions an interviewer may ask during an interview for a position ...

    Discover the world of investment banking and learn what questions are likely during an interview for a position with an investment ...

You May Also Like

Related Tutorials
  1. Mutual Funds & ETFs

    Top ETFs And What They Track: A Tutorial

  2. Retirement

    Analyzing The Best Retirement Plans And Investment Options

  3. Trading Strategies

    Commodities Outlook For The Remainder Of 2012

  4. Mutual Funds & ETFs

    Complete Guide To Investment Companies, Funds And REITs

  5. Taxes

    The Complete Guide To Retirement Planning For 30-Somethings

Trading Center