5 thoughts on “aka jewelry wholesale What is the profit model of hedge funds?”
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wholesale direct jewelry I. Hedge fund's profit model (operation): 1. In the initial hedge operation, after purchasing a stock, the fund manager purchased a certain price and timeliness of this stock at the same time. The effectiveness of declining options is that when the stock price fell below the price of options, the seller's option holders could sell the stocks held in their hands at a option -limited price, so as to hedge the risk of stock decline. 2. In another type of hedge operation, the fund manager first selected a certain type of market to watch the industry, buy several high -quality shares in the industry, and sell several inferior stocks in the industry at the same time. As a result of this combination, if the industry is expected to perform well, the increase in high -quality stocks will exceed the stocks of other industries, and the income of buying high -quality stocks will be greater than the loss of short -selling and inferior stocks. Then the decline in the stocks of poor companies must be greater than high -quality stocks, and the profit obtained by selling the air market must be higher than the loss caused by the decline in buying high -quality stocks. 2. Investment strategies commonly used in hedge funds: At present, more than 20 kinds of investment strategies commonly used in hedge funds can be divided into the following five types: 1, long short warehouses, that is, buying and short -selling stocks at the same time. It is a net long or net short position; 2, the market is neutral, that is, buying stocks with low stock price and high stock price at the same time; Low -convertible bonds, while selling short -selling stocks, vice versa; 4, global macro, that is, analyzes the economic and financial systems of various places from top to bottom, and buy and sell according to political and economic incidents and main trends; 5,. Manage futures, that is, holding various derivative tools. . The two most classic investment strategies of hedge funds are short settings and loan bars. 1, short settlement, that is, buying stocks as short -term investment, is to sell stocks purchased in the short term first, and then buy it back when its stock price falls. Shorters always use other people's stocks to shorten. 2. Long refers to buying stocks for a long time. It is most effective to adopt a short -standing strategy in a bear market. If the stock market does not fall and the shortcoming, the short -handed person bets the wrong direction of the stock market, you must spend a lot of money to buy back the appreciation stocks and eat the loss. Due to high risk, this investment strategy is not adopted by general investors. 3, loan bars have multiple meanings in the financial industry. The most basic meaning of English words is the effect of leverage. Generally, it refers to the use of credit methods to expand its capital foundation.
fashion jewelry wholesale rahway nj The content comes from "People with Knowledge" 1. What is hedge funds (definition and characteristics) The aliases that can be said to be hedge funds, such as cover funds, arbitrage funds and insurance shelter funds, but you must clarify the hedge fund is What is not easy. Since the 1990s, a variety of large -scale financial tools published in China, such as "New International Financial Ci" (editor -in -chief of Liu Hongru, 1994), "International Financial Book" (editor -in -chief of Wang Chuanlun, 1993), selected "Hedging ) "" Fund "," Arbitrage "," Mutual Fund "and other entries, but there is no entry of" hedge funds ", indicating that until the mid -1990 It has already entered, but hedge funds have never been heard. If foreign understanding of hedge funds is also quite chaotic. Trying the definition of hedge funds for hedge funds as follows. The definition of the IMF is "hedge fund is a private investment portfolio, which is established offshore to make full use of the benefits of taxation and control." The definition of Mar/Hedge, the first institution in the United States to provide hedge fund business data, is "adopting rewarding commissions (usually 15-25%), and at least meet one of the following standards: the fund is invested in multiple assets; The funds that make bulls must use the leverage effect; or the fund uses various arbitrage techniques in its investment portfolio. "Another hedge fund research institution in the United States summarizes hedge funds as:" Adopt a private investment partnership company or offshore fund,,, the form of a private investment partnership or offshore fund,,,, is Extract commissions and use different investment strategies according to performance. "The definition of VHFA, a well -known US Pioneer Hedge Fund International Consultant Company, is" the form of private partnerships or limited liability companies, mainly investing in securities or financial derivatives issued publicly. " Fed the Federal Reserve Chairman Greenspan gave an indirect definition of hedge funds when testimony to the US Congress on the issue of long -term capital management company (LTCM). He said that LTCM is a hedge fund, or a common fund arranged by the organizational arrangements that limited customers to a few very sophisticated and rich individuals to avoid control, and pursue a large number of high returns under the investment and use of transactions. In the above definition, especially the indirect definition of Grimpanpan, we believe that hedge funds are not "foreign guests", and the essence is still a common fund, but the organization arrangements are more special and investors (including investors (including investors (including investors (including investors (including investors (including investors (including investors (including investors (including investors (including investors (including investors (including investors (including investors (including investors (including investors (including investors (including investors (including investors (including investors There are fewer personal and institutions. For example, it is like a "rich investment club". In contrast, the common common fund is "mass investment club". Due to the special organizational arrangements of hedge funds, it can drill the emptiness of the law, without supervision and unrestrainedly using all financial instruments to obtain high returns, thereby deriving many differences from ordinary common funds. It people believe that the key to hedge funds is to apply leverage and invest in derivatives. But in fact, as IMF pointed out, some investors also participate in exactly the same operation of hedge funds, such as the self -operated business department of commercial banks and investment banks hold positions, buy and sell derivatives, and change their assets in the same way as hedge funds. combination. Many common funds, pension funds, insurance companies and university donations participate in some of the same operations and among the most important investors in hedge funds. In addition, from a segmented banking system, the total assets and debts of commercial banks are several times of their capital, and commercial banks are also using leverage. The interpretation of the literature, trying the hedge funds and general common funds as follows (Table 1), which can be clearly seen from the characteristics of hedge funds, and then accurately grasp what hedge fund is.
The characteristic comparison of the characteristics of the hedge fund and the common fund The hedge fund common fund The number of investors strictly restricts the US Securities Law: Participate in the name of an individual, in the past two years, individuals The annual income is at least $ 200,000; if participating in the name of the family, the couple's income in the past two years is at least 300,000 US dollars; if they participate in the name of an institution, the net assets are at least $ 1 million. New regulations made in 1996: the participants expanded from 100 to 500. The condition of the participants is that individuals must have investment securities worth more than $ 5 million. Unlimited The operational portfolio and transactions are rarely limited. The main partners and managers can use various investment technologies freely, including short -selling, derivative securities transactions and leverage restrictions n supervision Not supervised the 1933 Securities Law, the 1934 Securities Trading Law, and the 1940 Investment Corporation Law that less than 100 investors did not need to register with the financial authorities such as the US Securities Management Commission and other financial authorities. Regulation. Because the investor objects are mainly a few very sophisticated and rich individuals, and their ability to protect themselves is strong. Strict supervision is that because investors are the general public, many people lack the necessary understanding of the market, and implement strict supervision for considering the consideration of avoiding public risks, protecting the weak, and ensuring social security. The private equity securities law stipulates that it must not use any media as advertising when attracting customers. Investors mainly participate in four ways: the so -called "investment reliable news" obtained in the upper society; Managers; specially introduced by other funds; specially introduced by investment banks, securities agencies or investment consulting companies. Public offering publicly advertises to attract customers Is whether it can set up offshore to set up the benefits of offshore funds: the number of investors who avoid US law and tax avoidance. It is usually located on the Tax Federation, Virgin Island, Bahamas, Bermuda, Cayman Island, Dublin and Luxembourg (). Among the 68 billion U.S. dollars managed by the hedge fund statistics statistics in November 1996, 31.7 billion U.S. dollars invested in offshore hedge funds. This shows that the offshore hedge fund is an important part of the hedge fund industry. According to WHFA statistics, if the "fund's fund" is not included, the assets managed by offshore funds are almost twice as much as the shore fund. The information disclosure of information cannot be established The information disclosure is not disclosed. Do not need to disclose financial and asset status information disclosure The fixed management fee of 1 % -2 % of managers' compensation commissions commission 5 % -25 % of the annual profit. Generally, fixed salary Whether the manager can participate in the shares can not be shared The investor withdrawal whether there is regulations for restrictions. Before the year. Unlimited or less limited The loan transactions can be traded for their own assets for mortgage transactions. The large -scale global assets exceeded 7 trillion . The average annual return rate from January 1990 to August 1998 was 17 %. (Wall Street Standard -Poole 500 stocks during the same period of the same period is only 12 % of the annual growth rate). According to reports, the annual return on the annual investment of some well -operated hedge funds is as high as 30-50 %. Compared to inferiority
2, what is "hedge", why do hedge? "hedge" is also translated as "set of value preservation", "protection disk", "support plate", "top insurance", "hedge", "cover transaction" and so on. Early hedging refers to the "method of transaction method for the price risk of price risks in the spot market through the same types and quantities of goods in the futures market as the same types and quantities, but the opposite contract transaction in the trading part" (editor of Liu Hongru, 1995). Early hedging was a real value preservation, which was used in agricultural products and foreign exchange markets. Hedger (Hedger) is generally actual producers and consumers, or those who owns the future seller, or those who need to purchase a commodity in the future, or those who have claims to be collected in the future, or the negative debt will be repaid in the future, and many more. These people are facing the risk of loss due to changes in commodity and currency prices. Hedging is a financial operation to avoid risks. The purpose is to avoid exposed risk in futures or options. So that there is no risk of exposure in your asset portfolio. For example, a French exporter knows that he will export a batch of cars to the United States after three months and will receive $ 1 million, but he does not know what the exchange rate of the US dollar to the franc is after three months. If the US dollar fell sharply Will be lost. In order to avoid risks, you can take the same amount of US dollars in the futures market (pay the payment after three months), that is, lock the exchange rate, thereby avoiding the risk caused by the uncertainty of the exchange rate. Hedies can be sold short and short. If you already have an asset and are ready to sell it in the future, you can use the asset of short selling to lock the price. If you want to buy an asset in the future and worry about this asset price increase, you can buy futures futures. Because the essence of the problem here is that the futures price is the difference between the spot price at the time of the future period, so no one will truly deliver this asset. What is going to deliver is the difference between the futures price and the spot price at the due date. In this sense, the sale of the asset is short and short. So "hedge" of hedge funds? May wish to cite the example of the originator of hedge fund Jones. Jones realized that hedging is a market neutral strategy. By doing bulls and short operations to underestimating securities, it can effectively amplify investment capital, and make limited resources for large trading. At that time, the two investment tools widely used in the market were short -selling and leverage effects. Jones combined these two investment tools and founded a new investment system. He divides the risks in stock investment into two categories: the risks from individual stocks and risks from the entire market, and try to separate these two risks. He used some assets to maintain a basket of short -selling stocks as a means of decline in the overall level of sales market. Under the premise of controlling market risks to a certain limit, at the same time, the leverage effect is used to amplify the profits he obtained from individual stocks. The strategy is to buy specific stocks for multi -header and sell other stocks. By buying those stocks with "underestimation" and selling "value overestimation" stocks, you can expect that no matter what the market is, you can get profits from it. Therefore, the investment portfolio of the Jones Fund is divided into two parts of the opposite nature: some stocks make a profit when the market is bullish, and the other part is profitable when the market falls. This is the "hedge" method of "hedge fund". Although Jones believes that stock choices are more important than seeing market timing, he still increases or reduces the net exposure risk of investment portfolios based on his prediction of market conditions. Due to the long -term trend of the stock price rising, Jones's investment is always "net bulls". What to join the financial derivative tools such as options? May wish to give an example again. If the current price of a company's stock is 150 yuan, it is estimated that it can be appreciated to 170 yuan at the end of the month. The traditional approach is to invest in the company's shares, pay 150 yuan, and once the profit is 20 yuan, the proportion of profits to cost is 13.3%. However, if you use options, you can use a deposit of 5 yuan per share (current stock price) to buy a subscription option with a market price of 150 yuan this month. 20 yuan, minus 5 yuan paid by the margin, net earning 15 yuan (for simple calculations, no handling fee), that is, the cost of 5 yuan per share is 15 yuan, and the rate of profit to cost is 300 %. At the beginning, it was used for optional investment with 150 yuan. At this time, it was not 20 yuan, but an amazing 4500 yuan. It can be seen that if you use derivatives appropriately, you can obtain more profits at a lower cost, just like the principle of leverage in physics. The weight of the fulcrum. Financialists call it a leverage effect. In this case, if it is not to avoid danger (that is, it is actually incapable of hedging), but purely the direction of the market, and use leverage to bet. Once you do it right, you can get huge profits, but the risks are also great. Once lost losses, the leverage effect is enlarged. The U.S. Long -term Capital Management Fund (LTCM) uses its own funds of US $ 2.2 billion as mortgage, loans of US $ 125 billion, and its total assets of more than $ 120 billion. For 100 million US dollars, a leveraged multiple reaches 56.8, as long as one thousandth of risks can be destroyed.
3. The hedge fund category (Strategy defined)
mar/hedge divides the hedge funds into 8 categories: 1, macro (macro) fund: Operation according to the changes in the global economic situation reflected in the stock price, foreign exchange and interest rates. 2, Global Fund: Invest in emerging markets or some specific regions in the world. Although it is operated according to the trend of a special market like a macro fund, it is more oriented to choose a single market. Stocks are not interested in index derivatives like macro funds; 3, long only funds: Traditional equity funds are similar to hedge funds, that is, reward commissions and leverage. 4, Market-Neutral Fund: Achieve market risks through long-headed hedging operations. In this sense, their investment philosophy is closest to early hedge funds (such as Jones Fund). This type of fund includes convertible arbitrage funds; funds for stocks and futures arbitrage; or funds operating according to the income curve of the bond market; The industry mainly includes: health care, financial services, food and beverage industry, media communications industry, natural resources industry, petroleum and gas industry, real estate, technology, transportation and public utilization, etc.; 6. SHORT SALES Fund: Borrowing from the agent to the securities that judges "value overestimation" and sell them in the market, in order to buy it back to the agent at a lower price in the future. Investors often preserve the duration of the investment portfolio that wants the traditional investment portfolio, or the investor who hopes to hold a position in a bear market; Those events that are regarded as special circumstances. Including unfortunate () securities funds, risk arbitrage funds, etc. 8, Funds of Funds: Allocate investment portfolios to various hedge funds, sometimes leverage. The U.S. Pioneer Hedge Fund Research Company (1998) divided hedge funds into 15 categories: 1, convertible arbitrage ARBITRAGE) funds: refers to the asset portfolio of the purchase of convertible securities (usually convertible bonds), usually, And hedge the risk of stocks through ordinary stocks that sell short -selling bids. 2, Unfortunate Securities () Fund: Invest in corporate securities that may have been short -selling or expected to not be able to receive environmental impact. Including reorganization, bankruptcy, depression, and reconstruction of other companies. Fund managers use Put Option or selling options premium (Put Option) for market hedging. 3, Emerging Markets Fund: Company securities or national bonds invested in developing or "emerging" countries. Mainly do more. 4, Equity Hedge Fund: Make multiple stocks on some stocks, and sell other stocks at any time. 5. Equity Market Neutral: Use related equity securities to seek profits, and reduce market opening risks through multi -head and short operation combinations. 6. Equity Non-Hedge: Although the fund has the ability to use short-selling stocks and/or stock index options for hedging operations, it is mainly to make stocks. Such funds are called "stock pickers". 7, Event-Driven: also known as the "company life cycle" investment. The fund invests in opportunities caused by major transactions, such as mergers and acquisitions, bankruptcy restructuring, asset reorganization, and stock repurchase. 8, fixed income 🙂 Fund: refers to a fund invested in fixed income securities. Including arbitrage funds, convertible bond funds, diversified funds, high -yield funds, mortgage endorsements, etc. 9, macro (MACRO): refers to the expected price of the stock market, interest rates, foreign exchange, and physical objects on the basis of macro and financial environment analysis. 10, Market Timing: Buy investment products with an upward trend and sell investment products with a decline. The fund is mainly traded between the common fund and the currency market. 11. Merger Arbitrage: Sometimes it is also called risk arbitrage, including investing in the incident -driven environment such as leveraged acquisitions, merging and hostile acquisitions. 12, Relative Value Arbitrage: Try to use various investment products such as stocks, bonds, options, and futures to profit. 13, SECTOR Fund: funds invested in various industries. 14, Short Selling: Including the sale of securities that do not belong to the seller, it is a technology used to use the expected price decline. 15, Fund of Funds: Investment between multiple managers or management accounts of the fund. The strategy involves the multi -asset portfolio of managers, the goal is to significantly reduce the risk or risk fluctuation of a single manager investment. Although there are many types of hedge funds above, generally speaking, it is mainly two categories. 1 is a macro hedge fund, the most famous is Soros's quantum fund. Many people think that the macro hedge fund is the most vicious fund, and the risk is the largest. In fact, the risk of macro hedge funds is not the largest. Generally, it only uses 4-7 times leverage. Although the macro hedge fund pursue the diversification of investment strategies, there are still several common features such as a, and the macro instability of various countries. Find a country where macroeconomic variables deviate from stability and when these variables are unstable, their asset prices and related profits will fluctuate violently. This type of foundation assumes considerable risks in order to have considerable returns. b, managers are particularly willing to make a significant risk of losing a lot of capital. For example, in the Asian financial crisis in 1997, investors judged that the Thai baht would depreciate. Although it was impossible to accurately expect the date of the specific depreciation, it could be determined that it would not appreciate, so dare to invest boldly. c, when the cost of fundraising is low, it is most likely to buy a lot. Cheap funding makes them dare to buy a lot of money and hold positions even when they are uncertain about the incident. D, managers are very interested in liquidity market. In the mobile market, they can make large transactions at low costs. In emerging markets, limited liquidity and limited trading scale have caused certain constraints to macro hedge funds and other investors who try to build positions. Emerging markets carry out capital control or restrictions on domestic banks with offshore business exchanges, making it difficult for hedge funds to manipulate the market. Due to the small and lack of liquidity markets, anonymous investment cannot be invested, and managers are also worried that they will be regarded as a government or central bank transaction. . The other type is a Relative Value fund. It invests in the relative price of closely related securities (such as Treasury coupons and bonds), which is different from macro -hedging funds. Generally, it is not risk of market volatility. However, because the price difference between related securities is usually small, it cannot make high profits without leverage effects. Therefore, relative value funds are more inclined to use high leverage than macro hedge funds, so risks are even greater. The most famous relative value fund is LTCM. The president of LTCM, Miriwase, believes that "the difference between the difference between the differences between various types of bonds", that is, under the action of the market, the unreasonable difference between the bonds will eventually disappear. Therefore profit. However, the difference between bonds is so small. To make money, you must risk high leverage. In the European bond market, the LTCM has been gambled "Before the euro was launched, the interest difference between bonds between the EU countries will gradually shrink" because Germany and Italy are the first batch of euro members. LTCM holds a large number of multi -warehouses with Italian, Greek government bonds and Denmark mortgage bonds, and also holds a large number of German government bonds. At the same time, in the US bond market, the arbitrage portfolio of LTCM is to purchase mortgage bonds and sell US Treasury bonds. On August 14, 1998, the Russian government ordered the suspension of Treasury bond transactions, which led to a sharp decline in new market bonds. A large number of foreign capital escaped and regarded the high -quality bond markets in Germany and the United States as a safe island. As a result, the national bonds of Germany and the United States faced the stimulus of the stock market, and the prices repeatedly reached a record high. At the same time, the emerging market bond market plummeted, and the interest difference between Germany and US bonds and other bonds enlarged. From January to August 1998, the 10-year debt interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest volatility of 0.20-0.32 % of the volatility of A1 was basically remained; after Russia's suspension of government bond transactions, the A1 value rapidly became larger, and it was even more. At the end of August, a new high of 0.57 % came to November; in September, A1 changed repeatedly, but it was always at a high of 0.45 %; it was 0.47 % on September 28. The investment portfolio of Greek Treasury bonds and German Treasury bonds failed (Greek Treasury debt losses were also in the Italian Treasury bonds); at the same time, a large number of Russian Treasury bonds held became waste paper because of stopping transactions; Danish mortgage bonds were naturally difficult to escape. In the United States, municipal bond transactions are extremely popular, and the interest rate reduction of Treasury bonds has increased. Since August 1, 1998, market interest rates have risen significantly compared with the 10 -year US Treasury interest rate A2; on August 21, the US stock market plummeted, and the Dow Jones Industrial Average fell 512 points. At the same time, the pressure of US corporate bonds is in sharp contrast to the strong buying of government bonds. The interest of government bonds has been pushed to a low level in 29 years, and LTCM escaped the U.S. Treasury bond empty warehouse. Therefore, the LTCM's bond investment portfolio in the European and American bond market has two short damage. At the end of September, the company's net asset value fell by 78 %, only 500 million US dollars, and the edge of the bankruptcy was on the verge of bankruptcy.
blank ceramic jewelry dish wholesale Hedge fund's profit model (operation): 1. In the initial hedge operation, after purchasing a stock, the fund manager purchased a certain price and timeliness of this stock at the same time. The effectiveness of declining options is that when the stock price fell below the price of options, the seller's option holders could sell the stocks held in their hands at a option -limited price, so as to hedge the risk of stock decline. 2. In another type of hedge operation, the fund manager first selected a certain type of market to watch the industry, buy several high -quality stocks in the industry, and sell several inferior stocks in the industry at the same time. As a result of this combination, if the industry is expected to perform well, the increase in high -quality stocks will exceed the stocks of other industries, and the income of buying high -quality stocks will be greater than the loss of short -selling and inferior stocks. Then the decline in the stocks of poor companies must be greater than high -quality stocks, and the profit obtained by selling the air market must be higher than the loss caused by the decline in buying high -quality stocks.
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diamond jewelry wholesalers 1. In the initial hedge operation, after purchasing a stock, the fund managers purchased the certain price and timeliness of this stock at the same time. The effectiveness of declining options is that when the stock price fell below the price of options, the seller's option holders could sell the stocks held in their hands at a option -limited price, so as to hedge the risk of stock decline. 2. In another type of hedge operation, the fund manager first selects an industry with a bullish market to buy a few high -quality stocks in the industry, while selling several inferior stocks in the industry at the same time. The results of such a combination is that if the industry is expected to perform well, the increase in high -quality stocks will exceed the stocks of other industries, and the income of buying high -quality stocks will be greater than the loss of short -selling and inferior stocks. Without rising and falling, the decline in the stocks of worse the company must be greater than high -quality stocks, and the profit obtained by selling the empty market must be higher than the loss caused by the decline in buying high -quality stocks.
wholesale direct jewelry I. Hedge fund's profit model (operation): 1. In the initial hedge operation, after purchasing a stock, the fund manager purchased a certain price and timeliness of this stock at the same time. The effectiveness of declining options is that when the stock price fell below the price of options, the seller's option holders could sell the stocks held in their hands at a option -limited price, so as to hedge the risk of stock decline. 2. In another type of hedge operation, the fund manager first selected a certain type of market to watch the industry, buy several high -quality shares in the industry, and sell several inferior stocks in the industry at the same time. As a result of this combination, if the industry is expected to perform well, the increase in high -quality stocks will exceed the stocks of other industries, and the income of buying high -quality stocks will be greater than the loss of short -selling and inferior stocks. Then the decline in the stocks of poor companies must be greater than high -quality stocks, and the profit obtained by selling the air market must be higher than the loss caused by the decline in buying high -quality stocks. 2. Investment strategies commonly used in hedge funds: At present, more than 20 kinds of investment strategies commonly used in hedge funds can be divided into the following five types:
1, long short warehouses, that is, buying and short -selling stocks at the same time. It is a net long or net short position;
2, the market is neutral, that is, buying stocks with low stock price and high stock price at the same time; Low -convertible bonds, while selling short -selling stocks, vice versa;
4, global macro, that is, analyzes the economic and financial systems of various places from top to bottom, and buy and sell according to political and economic incidents and main trends;
5,. Manage futures, that is, holding various derivative tools.
. The two most classic investment strategies of hedge funds are short settings and loan bars.
1, short settlement, that is, buying stocks as short -term investment, is to sell stocks purchased in the short term first, and then buy it back when its stock price falls. Shorters always use other people's stocks to shorten. 2. Long refers to buying stocks for a long time. It is most effective to adopt a short -standing strategy in a bear market. If the stock market does not fall and the shortcoming, the short -handed person bets the wrong direction of the stock market, you must spend a lot of money to buy back the appreciation stocks and eat the loss. Due to high risk, this investment strategy is not adopted by general investors.
3, loan bars have multiple meanings in the financial industry. The most basic meaning of English words is the effect of leverage. Generally, it refers to the use of credit methods to expand its capital foundation.
fashion jewelry wholesale rahway nj The content comes from "People with Knowledge" 1. What is hedge funds (definition and characteristics)
The aliases that can be said to be hedge funds, such as cover funds, arbitrage funds and insurance shelter funds, but you must clarify the hedge fund is What is not easy. Since the 1990s, a variety of large -scale financial tools published in China, such as "New International Financial Ci" (editor -in -chief of Liu Hongru, 1994), "International Financial Book" (editor -in -chief of Wang Chuanlun, 1993), selected "Hedging ) "" Fund "," Arbitrage "," Mutual Fund "and other entries, but there is no entry of" hedge funds ", indicating that until the mid -1990 It has already entered, but hedge funds have never been heard.
If foreign understanding of hedge funds is also quite chaotic. Trying the definition of hedge funds for hedge funds as follows. The definition of the IMF is "hedge fund is a private investment portfolio, which is established offshore to make full use of the benefits of taxation and control." The definition of Mar/Hedge, the first institution in the United States to provide hedge fund business data, is "adopting rewarding commissions (usually 15-25%), and at least meet one of the following standards: the fund is invested in multiple assets; The funds that make bulls must use the leverage effect; or the fund uses various arbitrage techniques in its investment portfolio. "Another hedge fund research institution in the United States summarizes hedge funds as:" Adopt a private investment partnership company or offshore fund,,, the form of a private investment partnership or offshore fund,,,, is Extract commissions and use different investment strategies according to performance. "The definition of VHFA, a well -known US Pioneer Hedge Fund International Consultant Company, is" the form of private partnerships or limited liability companies, mainly investing in securities or financial derivatives issued publicly. "
Fed the Federal Reserve Chairman Greenspan gave an indirect definition of hedge funds when testimony to the US Congress on the issue of long -term capital management company (LTCM). He said that LTCM is a hedge fund, or a common fund arranged by the organizational arrangements that limited customers to a few very sophisticated and rich individuals to avoid control, and pursue a large number of high returns under the investment and use of transactions.
In the above definition, especially the indirect definition of Grimpanpan, we believe that hedge funds are not "foreign guests", and the essence is still a common fund, but the organization arrangements are more special and investors (including investors (including investors (including investors (including investors (including investors (including investors (including investors (including investors (including investors (including investors (including investors (including investors (including investors (including investors (including investors (including investors (including investors (including investors (including investors There are fewer personal and institutions. For example, it is like a "rich investment club". In contrast, the common common fund is "mass investment club". Due to the special organizational arrangements of hedge funds, it can drill the emptiness of the law, without supervision and unrestrainedly using all financial instruments to obtain high returns, thereby deriving many differences from ordinary common funds.
It people believe that the key to hedge funds is to apply leverage and invest in derivatives. But in fact, as IMF pointed out, some investors also participate in exactly the same operation of hedge funds, such as the self -operated business department of commercial banks and investment banks hold positions, buy and sell derivatives, and change their assets in the same way as hedge funds. combination. Many common funds, pension funds, insurance companies and university donations participate in some of the same operations and among the most important investors in hedge funds. In addition, from a segmented banking system, the total assets and debts of commercial banks are several times of their capital, and commercial banks are also using leverage.
The interpretation of the literature, trying the hedge funds and general common funds as follows (Table 1), which can be clearly seen from the characteristics of hedge funds, and then accurately grasp what hedge fund is.
The characteristic comparison of the characteristics of the hedge fund and the common fund
The hedge fund common fund
The number of investors strictly restricts the US Securities Law: Participate in the name of an individual, in the past two years, individuals The annual income is at least $ 200,000; if participating in the name of the family, the couple's income in the past two years is at least 300,000 US dollars; if they participate in the name of an institution, the net assets are at least $ 1 million. New regulations made in 1996: the participants expanded from 100 to 500. The condition of the participants is that individuals must have investment securities worth more than $ 5 million. Unlimited
The operational portfolio and transactions are rarely limited. The main partners and managers can use various investment technologies freely, including short -selling, derivative securities transactions and leverage restrictions n supervision Not supervised the 1933 Securities Law, the 1934 Securities Trading Law, and the 1940 Investment Corporation Law that less than 100 investors did not need to register with the financial authorities such as the US Securities Management Commission and other financial authorities. Regulation. Because the investor objects are mainly a few very sophisticated and rich individuals, and their ability to protect themselves is strong. Strict supervision is that because investors are the general public, many people lack the necessary understanding of the market, and implement strict supervision for considering the consideration of avoiding public risks, protecting the weak, and ensuring social security.
The private equity securities law stipulates that it must not use any media as advertising when attracting customers. Investors mainly participate in four ways: the so -called "investment reliable news" obtained in the upper society; Managers; specially introduced by other funds; specially introduced by investment banks, securities agencies or investment consulting companies. Public offering publicly advertises to attract customers
Is whether it can set up offshore to set up the benefits of offshore funds: the number of investors who avoid US law and tax avoidance. It is usually located on the Tax Federation, Virgin Island, Bahamas, Bermuda, Cayman Island, Dublin and Luxembourg (). Among the 68 billion U.S. dollars managed by the hedge fund statistics statistics in November 1996, 31.7 billion U.S. dollars invested in offshore hedge funds. This shows that the offshore hedge fund is an important part of the hedge fund industry. According to WHFA statistics, if the "fund's fund" is not included, the assets managed by offshore funds are almost twice as much as the shore fund. The information disclosure of information cannot be established
The information disclosure is not disclosed. Do not need to disclose financial and asset status information disclosure
The fixed management fee of 1 % -2 % of managers' compensation commissions commission 5 % -25 % of the annual profit. Generally, fixed salary
Whether the manager can participate in the shares can not be shared
The investor withdrawal whether there is regulations for restrictions. Before the year. Unlimited or less limited
The loan transactions can be traded for their own assets for mortgage transactions. The large -scale global assets exceeded 7 trillion
. The average annual return rate from January 1990 to August 1998 was 17 %. (Wall Street Standard -Poole 500 stocks during the same period of the same period is only 12 % of the annual growth rate). According to reports, the annual return on the annual investment of some well -operated hedge funds is as high as 30-50 %. Compared to inferiority
2, what is "hedge", why do hedge?
"hedge" is also translated as "set of value preservation", "protection disk", "support plate", "top insurance", "hedge", "cover transaction" and so on. Early hedging refers to the "method of transaction method for the price risk of price risks in the spot market through the same types and quantities of goods in the futures market as the same types and quantities, but the opposite contract transaction in the trading part" (editor of Liu Hongru, 1995). Early hedging was a real value preservation, which was used in agricultural products and foreign exchange markets. Hedger (Hedger) is generally actual producers and consumers, or those who owns the future seller, or those who need to purchase a commodity in the future, or those who have claims to be collected in the future, or the negative debt will be repaid in the future, and many more. These people are facing the risk of loss due to changes in commodity and currency prices. Hedging is a financial operation to avoid risks. The purpose is to avoid exposed risk in futures or options. So that there is no risk of exposure in your asset portfolio. For example, a French exporter knows that he will export a batch of cars to the United States after three months and will receive $ 1 million, but he does not know what the exchange rate of the US dollar to the franc is after three months. If the US dollar fell sharply Will be lost. In order to avoid risks, you can take the same amount of US dollars in the futures market (pay the payment after three months), that is, lock the exchange rate, thereby avoiding the risk caused by the uncertainty of the exchange rate. Hedies can be sold short and short. If you already have an asset and are ready to sell it in the future, you can use the asset of short selling to lock the price. If you want to buy an asset in the future and worry about this asset price increase, you can buy futures futures. Because the essence of the problem here is that the futures price is the difference between the spot price at the time of the future period, so no one will truly deliver this asset. What is going to deliver is the difference between the futures price and the spot price at the due date. In this sense, the sale of the asset is short and short.
So "hedge" of hedge funds? May wish to cite the example of the originator of hedge fund Jones. Jones realized that hedging is a market neutral strategy. By doing bulls and short operations to underestimating securities, it can effectively amplify investment capital, and make limited resources for large trading. At that time, the two investment tools widely used in the market were short -selling and leverage effects. Jones combined these two investment tools and founded a new investment system. He divides the risks in stock investment into two categories: the risks from individual stocks and risks from the entire market, and try to separate these two risks. He used some assets to maintain a basket of short -selling stocks as a means of decline in the overall level of sales market. Under the premise of controlling market risks to a certain limit, at the same time, the leverage effect is used to amplify the profits he obtained from individual stocks. The strategy is to buy specific stocks for multi -header and sell other stocks. By buying those stocks with "underestimation" and selling "value overestimation" stocks, you can expect that no matter what the market is, you can get profits from it. Therefore, the investment portfolio of the Jones Fund is divided into two parts of the opposite nature: some stocks make a profit when the market is bullish, and the other part is profitable when the market falls. This is the "hedge" method of "hedge fund". Although Jones believes that stock choices are more important than seeing market timing, he still increases or reduces the net exposure risk of investment portfolios based on his prediction of market conditions. Due to the long -term trend of the stock price rising, Jones's investment is always "net bulls".
What to join the financial derivative tools such as options? May wish to give an example again. If the current price of a company's stock is 150 yuan, it is estimated that it can be appreciated to 170 yuan at the end of the month. The traditional approach is to invest in the company's shares, pay 150 yuan, and once the profit is 20 yuan, the proportion of profits to cost is 13.3%. However, if you use options, you can use a deposit of 5 yuan per share (current stock price) to buy a subscription option with a market price of 150 yuan this month. 20 yuan, minus 5 yuan paid by the margin, net earning 15 yuan (for simple calculations, no handling fee), that is, the cost of 5 yuan per share is 15 yuan, and the rate of profit to cost is 300 %. At the beginning, it was used for optional investment with 150 yuan. At this time, it was not 20 yuan, but an amazing 4500 yuan.
It can be seen that if you use derivatives appropriately, you can obtain more profits at a lower cost, just like the principle of leverage in physics. The weight of the fulcrum. Financialists call it a leverage effect. In this case, if it is not to avoid danger (that is, it is actually incapable of hedging), but purely the direction of the market, and use leverage to bet. Once you do it right, you can get huge profits, but the risks are also great. Once lost losses, the leverage effect is enlarged. The U.S. Long -term Capital Management Fund (LTCM) uses its own funds of US $ 2.2 billion as mortgage, loans of US $ 125 billion, and its total assets of more than $ 120 billion. For 100 million US dollars, a leveraged multiple reaches 56.8, as long as one thousandth of risks can be destroyed.
3. The hedge fund category (Strategy defined)
mar/hedge divides the hedge funds into 8 categories:
1, macro (macro) fund: Operation according to the changes in the global economic situation reflected in the stock price, foreign exchange and interest rates.
2, Global Fund: Invest in emerging markets or some specific regions in the world. Although it is operated according to the trend of a special market like a macro fund, it is more oriented to choose a single market. Stocks are not interested in index derivatives like macro funds;
3, long only funds: Traditional equity funds are similar to hedge funds, that is, reward commissions and leverage.
4, Market-Neutral Fund: Achieve market risks through long-headed hedging operations. In this sense, their investment philosophy is closest to early hedge funds (such as Jones Fund). This type of fund includes convertible arbitrage funds; funds for stocks and futures arbitrage; or funds operating according to the income curve of the bond market; The industry mainly includes: health care, financial services, food and beverage industry, media communications industry, natural resources industry, petroleum and gas industry, real estate, technology, transportation and public utilization, etc.;
6. SHORT SALES Fund: Borrowing from the agent to the securities that judges "value overestimation" and sell them in the market, in order to buy it back to the agent at a lower price in the future. Investors often preserve the duration of the investment portfolio that wants the traditional investment portfolio, or the investor who hopes to hold a position in a bear market; Those events that are regarded as special circumstances. Including unfortunate () securities funds, risk arbitrage funds, etc.
8, Funds of Funds: Allocate investment portfolios to various hedge funds, sometimes leverage.
The U.S. Pioneer Hedge Fund Research Company (1998) divided hedge funds into 15 categories:
1, convertible arbitrage ARBITRAGE) funds: refers to the asset portfolio of the purchase of convertible securities (usually convertible bonds), usually, And hedge the risk of stocks through ordinary stocks that sell short -selling bids.
2, Unfortunate Securities () Fund: Invest in corporate securities that may have been short -selling or expected to not be able to receive environmental impact. Including reorganization, bankruptcy, depression, and reconstruction of other companies. Fund managers use Put Option or selling options premium (Put Option) for market hedging.
3, Emerging Markets Fund: Company securities or national bonds invested in developing or "emerging" countries. Mainly do more.
4, Equity Hedge Fund: Make multiple stocks on some stocks, and sell other stocks at any time.
5. Equity Market Neutral: Use related equity securities to seek profits, and reduce market opening risks through multi -head and short operation combinations.
6. Equity Non-Hedge: Although the fund has the ability to use short-selling stocks and/or stock index options for hedging operations, it is mainly to make stocks. Such funds are called "stock pickers".
7, Event-Driven: also known as the "company life cycle" investment. The fund invests in opportunities caused by major transactions, such as mergers and acquisitions, bankruptcy restructuring, asset reorganization, and stock repurchase.
8, fixed income 🙂 Fund: refers to a fund invested in fixed income securities. Including arbitrage funds, convertible bond funds, diversified funds, high -yield funds, mortgage endorsements, etc.
9, macro (MACRO): refers to the expected price of the stock market, interest rates, foreign exchange, and physical objects on the basis of macro and financial environment analysis.
10, Market Timing: Buy investment products with an upward trend and sell investment products with a decline. The fund is mainly traded between the common fund and the currency market.
11. Merger Arbitrage: Sometimes it is also called risk arbitrage, including investing in the incident -driven environment such as leveraged acquisitions, merging and hostile acquisitions.
12, Relative Value Arbitrage: Try to use various investment products such as stocks, bonds, options, and futures to profit.
13, SECTOR Fund: funds invested in various industries.
14, Short Selling: Including the sale of securities that do not belong to the seller, it is a technology used to use the expected price decline.
15, Fund of Funds: Investment between multiple managers or management accounts of the fund. The strategy involves the multi -asset portfolio of managers, the goal is to significantly reduce the risk or risk fluctuation of a single manager investment.
Although there are many types of hedge funds above, generally speaking, it is mainly two categories.
1 is a macro hedge fund, the most famous is Soros's quantum fund. Many people think that the macro hedge fund is the most vicious fund, and the risk is the largest. In fact, the risk of macro hedge funds is not the largest. Generally, it only uses 4-7 times leverage. Although the macro hedge fund pursue the diversification of investment strategies, there are still several common features such as
a, and the macro instability of various countries. Find a country where macroeconomic variables deviate from stability and when these variables are unstable, their asset prices and related profits will fluctuate violently. This type of foundation assumes considerable risks in order to have considerable returns.
b, managers are particularly willing to make a significant risk of losing a lot of capital. For example, in the Asian financial crisis in 1997, investors judged that the Thai baht would depreciate. Although it was impossible to accurately expect the date of the specific depreciation, it could be determined that it would not appreciate, so dare to invest boldly.
c, when the cost of fundraising is low, it is most likely to buy a lot. Cheap funding makes them dare to buy a lot of money and hold positions even when they are uncertain about the incident.
D, managers are very interested in liquidity market. In the mobile market, they can make large transactions at low costs. In emerging markets, limited liquidity and limited trading scale have caused certain constraints to macro hedge funds and other investors who try to build positions. Emerging markets carry out capital control or restrictions on domestic banks with offshore business exchanges, making it difficult for hedge funds to manipulate the market. Due to the small and lack of liquidity markets, anonymous investment cannot be invested, and managers are also worried that they will be regarded as a government or central bank transaction.
. The other type is a Relative Value fund. It invests in the relative price of closely related securities (such as Treasury coupons and bonds), which is different from macro -hedging funds. Generally, it is not risk of market volatility. However, because the price difference between related securities is usually small, it cannot make high profits without leverage effects. Therefore, relative value funds are more inclined to use high leverage than macro hedge funds, so risks are even greater. The most famous relative value fund is LTCM. The president of LTCM, Miriwase, believes that "the difference between the difference between the differences between various types of bonds", that is, under the action of the market, the unreasonable difference between the bonds will eventually disappear. Therefore profit. However, the difference between bonds is so small. To make money, you must risk high leverage. In the European bond market, the LTCM has been gambled "Before the euro was launched, the interest difference between bonds between the EU countries will gradually shrink" because Germany and Italy are the first batch of euro members. LTCM holds a large number of multi -warehouses with Italian, Greek government bonds and Denmark mortgage bonds, and also holds a large number of German government bonds. At the same time, in the US bond market, the arbitrage portfolio of LTCM is to purchase mortgage bonds and sell US Treasury bonds. On August 14, 1998, the Russian government ordered the suspension of Treasury bond transactions, which led to a sharp decline in new market bonds. A large number of foreign capital escaped and regarded the high -quality bond markets in Germany and the United States as a safe island. As a result, the national bonds of Germany and the United States faced the stimulus of the stock market, and the prices repeatedly reached a record high. At the same time, the emerging market bond market plummeted, and the interest difference between Germany and US bonds and other bonds enlarged. From January to August 1998, the 10-year debt interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest interest volatility of 0.20-0.32 % of the volatility of A1 was basically remained; after Russia's suspension of government bond transactions, the A1 value rapidly became larger, and it was even more. At the end of August, a new high of 0.57 % came to November; in September, A1 changed repeatedly, but it was always at a high of 0.45 %; it was 0.47 % on September 28. The investment portfolio of Greek Treasury bonds and German Treasury bonds failed (Greek Treasury debt losses were also in the Italian Treasury bonds); at the same time, a large number of Russian Treasury bonds held became waste paper because of stopping transactions; Danish mortgage bonds were naturally difficult to escape. In the United States, municipal bond transactions are extremely popular, and the interest rate reduction of Treasury bonds has increased. Since August 1, 1998, market interest rates have risen significantly compared with the 10 -year US Treasury interest rate A2; on August 21, the US stock market plummeted, and the Dow Jones Industrial Average fell 512 points. At the same time, the pressure of US corporate bonds is in sharp contrast to the strong buying of government bonds. The interest of government bonds has been pushed to a low level in 29 years, and LTCM escaped the U.S. Treasury bond empty warehouse. Therefore, the LTCM's bond investment portfolio in the European and American bond market has two short damage. At the end of September, the company's net asset value fell by 78 %, only 500 million US dollars, and the edge of the bankruptcy was on the verge of bankruptcy.
blank ceramic jewelry dish wholesale Hedge fund's profit model (operation): 1. In the initial hedge operation, after purchasing a stock, the fund manager purchased a certain price and timeliness of this stock at the same time. The effectiveness of declining options is that when the stock price fell below the price of options, the seller's option holders could sell the stocks held in their hands at a option -limited price, so as to hedge the risk of stock decline. 2. In another type of hedge operation, the fund manager first selected a certain type of market to watch the industry, buy several high -quality stocks in the industry, and sell several inferior stocks in the industry at the same time. As a result of this combination, if the industry is expected to perform well, the increase in high -quality stocks will exceed the stocks of other industries, and the income of buying high -quality stocks will be greater than the loss of short -selling and inferior stocks. Then the decline in the stocks of poor companies must be greater than high -quality stocks, and the profit obtained by selling the air market must be higher than the loss caused by the decline in buying high -quality stocks.
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diamond jewelry wholesalers 1. In the initial hedge operation, after purchasing a stock, the fund managers purchased the certain price and timeliness of this stock at the same time. The effectiveness of declining options is that when the stock price fell below the price of options, the seller's option holders could sell the stocks held in their hands at a option -limited price, so as to hedge the risk of stock decline.
2. In another type of hedge operation, the fund manager first selects an industry with a bullish market to buy a few high -quality stocks in the industry, while selling several inferior stocks in the industry at the same time.
The results of such a combination is that if the industry is expected to perform well, the increase in high -quality stocks will exceed the stocks of other industries, and the income of buying high -quality stocks will be greater than the loss of short -selling and inferior stocks. Without rising and falling, the decline in the stocks of worse the company must be greater than high -quality stocks, and the profit obtained by selling the empty market must be higher than the loss caused by the decline in buying high -quality stocks.