Hedge Fund is intended as a "risk to the dash through the fund" originated in the early '50s the United States. At that time the operation of the purposes is to use futures, options and other financial derivative products as well as the different associated space selling stocks to buy real, risk hedging, the operating skills, to a certain extent, and resolve to avoid investment risks. In 1949 the birth of the world's first Jones, a limited partnership hedge funds. Although hedge funds in the 20th century, 50 years have emerged, but it in the next three decades does not give too much attention until the last century, 80 years, with the development of financial liberalization, hedge funds have a more the vast investment opportunities, has since entered a rapid development stage.
Hedge Fund is intended as a "risk to the dash through the fund" originated in the early '50s the United States. At that time the operation of the purposes is to use futures, options and other financial derivative products as well as the different associated space selling stocks to buy real, risk hedging, the operating skills, to a certain extent, and resolve to avoid investment risks. In 1949 the birth of the world's first Jones, a limited partnership hedge funds. Although hedge funds in the 20th century, 50 years have emerged, but it in the next three decades does not give too much attention until the last century, 80 years, with the development of financial liberalization, hedge funds have a more the vast investment opportunities, has since entered a rapid development stage.
Hedge funds - hedge funds, characterized by the evolution of several decades, hedge funds have lost its original connotation of risk hedging, Hedge Fund of the title is also worthy of the name. Hedge funds have become a synonym for a new investment model. That is based on the latest investment theories and extremely complex financial market operations skills, full use of financial derivative products, leverage effect, bear the high risk. The pursuit of high-yield investment model. Hedge funds now have the following characteristics:
(1) the complexity of investment activities. In recent years, the increasing complexity of the structure, ever-changing forms of the various types of financial derivative products such as futures, options, swaps and other hedge funds has gradually become the main operational tools. These derivative products for hedging risk in this design, but because of its low cost. High-risk, high-return characteristics of hedge funds for many modern speculation, a powerful tool. Hedge funds coupled with the complexity of these financial instruments and even a combination of established, according to market forecast to invest time and reap excess profits at the projections are accurate, or the use of short-term fluctuations in midfield created by non-equilibrium nature of the design of investment strategies, in the market returning to normal state to obtain the difference.
(2) The effect of highly leveraged nature of investment. A typical hedge funds often take advantage of bank credit to high leverage credit crunch (Leveradge) in its original fund, based on the amount of times or even several times to expand the investment funds, so as to achieve the maximum return for the purpose of access. Hedge fund assets in securities of high liquidity, hedge funds can take advantage of the Fund's assets easily mortgages. A capital of only 1 billion dollars in hedge funds, you can repeatedly pledged its securities assets, lending billions of dollars. The existence of such a playing rod effect, makes the transaction a loan interest deduction, net profit is far greater than just the use of 100 million U.S. dollars in capital operation of the potential benefits. Similarly, precisely because of leverage, hedge funds are not in operation at that time often are faced with the enormous risk excess of loss.
(3) The financing of private nature. The organizational structure of hedge funds in general is a partner system. Fund investors to fund the occupation, providing most of the funding, but does not participate in investment activities; fund managers with funds and skills to the occupation, is responsible for the Fund's investment decisions. Because hedge funds require a high degree of covert operation and flexibility, so hedge funds in the United States a partner in the general control less than 100, and each partner's capital contribution of 100 million U.S. dollars. Because hedge funds are mostly private in nature, thereby circumventing U.S. law, disclosure of the public offering the stringent requirements of the Fund. Because hedge funds high-risk and complexity of the investment mechanism, and many Western countries are prohibited from recruiting to the public funds, in order to protect the interests of ordinary investors. In order to avoid high taxes and the United States.
(4) operation of the hidden nature and flexibility. Hedge funds and ordinary investors in securities-oriented investment funds not only in the fund investors, fund-raising methods, information disclosure requirements and regulated there is a big difference in degree. Investment activities in the fairness and flexibility, there are many differences. Securities investment funds generally have a more precise definition of the portfolio. Namely, the choice and proportion of investment instruments have established programs, such as a balanced fund that the fund portfolio of stocks and bonds, generally in half, growth-oriented funds that focus on high-growth stocks of investment: at the same time, mutual funds must not use the credit funds for investment, hedge funds have no restrictions in these areas and to define all the operational availability of financial instruments and combinations to maximize the use of credit funds, in order to reap excess profits above the average market return. As the operational flexibility and a high degree of concealment and leveraged finance effect, hedge funds in the modern international financial markets, speculation has played an important role.
Hedge funds - the famous fund Quantum Fund founder: Jim Rogers hedge funds most notably George Soros's Quantum Fund and Julian Robertson's Tiger Fund, they have created a 40% to 50% of compound an annual rate of return. To take high-risk investment, hedge funds, while the potential for high-yield hedge funds can not be expected to bring losses. The largest hedge funds are unlikely to fast-changing financial market is always in an invincible position.
Hedge funds - the famous fund Quantum Fund founder: Jim Rogers hedge funds most notably George Soros's Quantum Fund and Julian Robertson's Tiger Fund, they have created a 40% to 50% of compound an annual rate of return. To take high-risk investment, hedge funds, while the potential for high-yield hedge funds can not be expected to bring losses. The largest hedge funds are unlikely to fast-changing financial market is always in an invincible position. Quantum Fund George Soros's Quantum Fund, the predecessor of the 1969 Double Eagle Fund, founded by George Soros, the registered capital of 400 million U.S. dollars. In 1973, the Fund changed its name to the Soros Fund, the amount of capital jumped to 12 million U.S. dollars. Soros Fund, under which there are five different styles of hedge funds, while the Quantum Fund is the largest one, is the world's largest hedge funds, the size of one. Soros in 1979, a subsidiary of the
company changed its name again, formally named the Quantum Corporation. The so-called take the word is derived from the quantum Heisenberg uncertainty principle of quantum mechanics, this Law and George Soros consistent view of the financial markets. Uncertainty law that: In quantum mechanics, we must accurately describe the movement of atomic particles is impossible. The Soros that: the market is always in a state of uncertainty and constant volatility, but by significant discount, and unpredictable factors gambling, and money is possible. The smooth functioning of the company, to be super-par prices, based on the stock supply and demand based.
Tiger Fund
Julian Robertson, the famous agent in 1980, raised eight million U.S. dollars to start his own company - Tiger fund management companies. In 1993, the Tiger fund management company's hedge funds - Tiger attack on pounds, lire success, and in this action to obtain enormous benefits from this reputation in Tiger Fund has been sought after by many investors, the capital since Tiger Fund rapid expansion, eventually became America's most prominent hedge funds.
