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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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Trading is both, the easiest thing to do and also the most demanding thing you've ever done in your entire life. It can ruin your life, your family, and everything you touch if you don't respect it, or it can change your life, your families, and give you a feeling that is hard to find elsewhere if you succeed.
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