14.07.2024, 18:19
Zitat:How hedge funds make money 💰
📊 Long/Short Equity Strategy: Taking long positions in undervalued stocks while shorting overvalued stocks, aiming to profit from both upward and downward price movements.
> Citadel, Millennium, Coatue
🌐 Global Macro Strategy: Making bets on broad economic trends, utilising macroeconomic analysis to invest in various asset classes such as currencies, commodities, and bonds.
> Bridgewater Associates, Tudor Investments, Caxton Associates
⚡ Event-Driven Strategy: Seeks to capitalise on significant corporate events like mergers, acquisitions, bankruptcies, or restructurings, aiming to profit from price discrepancies before and after such events.
> Paulson & Co., Elliott Investment Management L.P., Third Point LLC
🏋♂️ Distressed Debt Strategy: This strategy invests in the debt of distressed companies, anticipating a recovery or restructuring of the debt and aiming to generate returns from the improvement in the company's financial situation.
> Oaktree Capital Management, L.P., Avenue, Apollo Global Management, Inc.
🔢 Relative Value Strategy: Involves identifying mispriced securities or assets and taking advantage of the price differentials through various strategies such as pairs trading, convertible arbitrage, or statistical arbitrage.
> Renaissance Technologies LLC, Two Sigma, The D. E. Shaw Group
💻 Quantitative/Algorithmic Strategy: Quant strategies rely on mathematical models and algorithms to make investment decisions, often based on historical data and statistical analysis.
AQR Capital Management, Citadel Securities, Renaissance Technologies LLC
🤝 Merger Arbitrage Strategy: This strategy involves simultaneously buying and selling securities of companies involved in a merger or acquisition, aiming to capture the price difference between the current market price and the expected deal price.
> Blackstone, JANA Partners, Highbridge Capital Management
🏛 Fixed Income Strategy: A focus on investments in fixed-income securities such as government bonds, corporate bonds, or mortgage-backed securities, aiming to generate returns from interest rate differentials or credit spreads.
> PIMCO, DoubleLine, BlueMountain Capital Management
✴ Multi-Strategy Hedge Fund: These hedge funds employ multiple strategies simultaneously or dynamically allocate capital across different strategies, aiming to diversify risk and generate returns from various sources.
> Point72, BlackRock, Citadel
🌍 Emerging Markets Strategy: A focus on investments in emerging market economies, aiming to benefit from the potential growth opportunities and market inefficiencies present in these regions.
> Ashmore, GMO, Acadian Asset Management
There are many more such as short only, credit, convertible arbitrage, and market neutral to name a few.
In summary, there’s more than one way to skin a cat!
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