What are the different types of security fund companies?
Hedge funds come to many types based on their investment styles, market exposures, management methods and more. Linding up companies usually use a specific investment strategy, as stated in their funds offering documents to investors. Investment strategies may also apply to a large number of other elements, including types of securities, specific industries and industries, as well as business tools such as the use of derivatives or playing the basic market. As a result, hedge funds can be classified in many ways that have a combination of multiple investment characteristics. These characteristics may include a global style or style controlled by events, directional or marketplaces of neutral funds and systematic or discretion funds.
Two of the investment styles that often use Hedge funds are global macro and events controlled. Global-Macro style indicates the following global economic trends fOther to direct your investment between Various Markets: Justice, Fixed Income, Commodity and Currency. The style controlled by the events concerns a fund focused on the development of corporate events, which will be on investment opportunities in matters such as fusion and acquisitions or bankruptcy restructuring. Combined with other investment considerations, Hedge Funds can be either a global monetary fund or a fixed income fund.
Hedge funds can be routed or market -routed based on their market exposures. Managers of the directional Hedge funds often bet the direction of market prices on the "long" or "short" market. The directional hedge funds that maintain greater risk exposures on the market hope to capture up market performance. Results may be volatile from time to time, but if there is an ascending trend in the long run, the directional funds of Fit PromOLERANCE RISK and can afford to maintain capital invested for a longer period of time.market neutral hedge funds or non -direct hedge funds are hedge funds that actually provide their investment positions. Funds often hold both long and short positions. Market neutral funds seek to achieve a stable income from investing by removing market risk, ie surrender of above-average returns in some years, but also avoid sub-par performance in other years. Market neutral funds are more suitable for investors who prefer lower risk and may receive revenues that may not be high but predictable.
Types of securing funds may also be discretion or systematic, depending on the methods of management that companies use. Discretion hedge funds use a more qualitative investment method to use the investment primarily selected manually fund managers. Systematic hedge funds, also known as the entertainment Quant Hedgeds with more withPuts on a pre -designed computer system for choosing individual investments. Both investment methods can apply to funds of any category as classified according to other investment functions.