Hedge Fund, also known as arbitrage fund or hedging fund. The word hedge (Hedge), originally intention to use the speculative method of using two parties to prevent losses in gambling, therefore referred to speculative funds buying and selling both in the financial market as hedge funds. Sepan -hedging funds developed with the development of the US financial industry, especially futures and options. At present, there are at least 4,200 puppet funds in the United States, with total capital exceeding 300 billion US dollars. 1. The characteristics of hedge funds The biggest feature of hedge funds is to carry out loan speculation transactions, that is, to buy short and short. About 85%of the hedge funds in the United States conduct loan speculation. After selecting the market or project, they use the capital with a small amount of capital to make huge amounts of loans at commercial banks, investment banks or stock exchanges, and then pour a lot of funds. The investment strategy is absolutely confidential. After the 1990s, the adventure coefficient of the US hedge fund became larger, but most of them were relatively successful. 2. The classification of hedge funds The is distinguished by transaction methods, which can be divided into low -risk hedge funds, high -risk hedge funds and crazy hedge funds. ① Low risk hedge fund. It is mainly invested in stock markets in the United States and foreign countries. Generally, speculative transactions are rarely borrowed by borrowing loans above their own capital. The transaction method is mainly based on long -term sales, that is, the stock that may increase in the stock, borrow and sell stocks that may fall; after the market improves, buy back these stocks; ② high risk hedge funds. Often conducts speculative transactions at a loan of 25 times higher than capital, and not only conducts long -term sales in the global stock market, but also conducts large -scale speculative transactions in global bonds, currency and commodity futures. It is a quantum fund operated by Soros; ③ crazy hedge funds. Loans with more than ten times or even tens of times higher than their own capital are speculated in the international financial market. The most typical example of this hedge fund is the US long -term capital management fund. The company has loans more than $ 10 billion in banks with more than 4 billion US dollars assets, and the value of various securities and stock markets they buy and sell is as high as 12,500 The US dollar, resulting in the outbreak of the U.S. hedge fund incident in September 1998. 3. The difference between hedge funds and common funds In broad, hedge funds are also a kind of common fund, but compared with the common fund n① Investor qualification. Investors in hedge funds have strict qualifications. The US Securities Law stipulates that participating in the name of personal names, with an annual income of at least $ 200,000 in the past two years; if they participate in the name of the family, the income of the couple in the last two years is at least 30 More than 10,000 US dollars; if you participate in the name of an institution, net assets are at least $ 1 million. New rules made in 1996: Participants expanded from 100 to 500. The condition of the participants is that individuals must have investment securities worth more than $ 5 million. There is no such limit for ordinary common funds. ② operation. The operation of hedge funds is not restricted, and the investment portfolio and transactions are rarely limited. The main partners and managers can use various investment technologies freely and flexibly, including short selling. Derivatives and leverage. And ordinary common funds are limited in operation. ③ supervision. Hedge funds are currently not subject to supervision. The US Securities Law in 1933, the 1934 Securities Trading Law, and the 1940 Investment Corporation Law stipulated that when the institutions of less than 100 investors were established, they did not need to register with the financial authorities such as the US Securities Management Commission, and they could be exempted from control. Because investors are mainly a few very sophisticated and wealthy individuals, they have strong self -protection ability. In contrast, the supervision of the common fund is relatively strict. This is mainly because investors are ordinary people. Many people lack the necessary understanding of the market. For the sake of avoiding the public risk, protecting the weak, and ensuring social security, strict supervision is implemented. Essence ④ fundraising method. Hedge funds are generally initiated through private equity, and securities law stipulates that it must not use any media to advertise when attracting customers. Investors are mainly involved in four ways: the so -called "reliable news" obtained in the upper society; the manager of a hedge fund is directly understood; transferred through other funds; from the investment bank. Special introduction of securities intermediary companies or investment consulting companies. And most of the common funds are mostly advertised through public offering to entertain customers. ⑤ Can it be established offshore. Hedge funds usually set up offshore funds, and the advantage is that the number of investors who can avoid US laws and avoid tax avoidance. It is usually located on the Tax Federation, Virgin Island, Bahamas, Bermuda, Cayman Island, Dublin and Luxembourg (). Among the $ 68 billion hedge funds statistics in November 1996, 31.7 billion U.S. dollars invested in offshore hedge funds. According to statistics, if the "fund's fund" is not included, the assets managed by the offshore fund are almost twice as much as the shore fund. And ordinary common funds cannot be set off offshore.
Funds that use hedge trading methods are called hedge funds, also known as hedging funds or hedging funds. The financial funds that refer to financial derivatives such as financial futures and financial options and financial organizations are based on the purpose of profit. It is a form of investment funds, which means "the fund of risk hedging". Hedge funds use various transaction methods to make huge profits with various transaction methods for hedging, replacement, clogs, and sets. These concepts have exceeded the category of traditional preventive risks and guarantee income operations. In addition, the legal threshold for initiating and establishing hedge funds is much lower than that of mutual benefit funds, which further increases the risks. The hedge fund and securities investment funds for ordinary investors not only have a large difference in fund investors, fundraising methods, information disclosure requirements, and regulatory degree. There are many differences in the fairness and flexibility of investment activities. If securities investment funds generally have a clear definition of asset portfolios. That is, there is a certain plan for the selection and proportion of investment tools. For example, a balanced fund refers to the general half of the stocks and bonds in the fund portfolio, and the growth fund finger focuses on the investment of high -growth stocks. The funds are investing, and the hedge fund has no restrictions and definitions at all. It can use all operating financial instruments and combinations to maximize the use of credit funds to earn excess returns from the average profit of the market. I due to the heights and flexibility and leverage financing effects of the operation, hedge funds have played an important role in the speculative activities of the modern international financial market.
Funds that use hedge trading methods are called hedge funds, also known as hedging funds or hedging funds. It refers to financial funds that combine financial derivatives such as financial futures and financial options with financial instruments.
The hedge fund has 4 types of transaction models, namely: stock index futures hedge, commodity futures hedge, statistical hedge, and option hedge.
The stock index futures hedge and commodity futures hedge are the most commonly used transaction models. Among them, the symmetry of the stock index futures refers to the use of unreasonable prices in the stock index futures market for hedging to earn the difference in differences. There are several arbitrage methods for hedging, cross -sealing, cross -market hedging, and exaggerated hedging. rnrn而商品期货对冲类也类似于股指期货对冲，指的是在买入卖出某一种期货合约的同时，卖出或者是买入相关的另一种合约，并Two contracts at the same time at a certain time.
Hedge Fund refers to a fund that uses hedge trading methods. It is a financial fund that combines financial derivatives such as financial futures and financial options with financial instruments. It is a form of investment funds. Hedge funds are also based on the latest investment theory and extremely complicated financial market operation skills. They make full use of the leverage effectiveness of various financial derivative products, bear high -risk, and pursue high -yield investment models.
They -type transaction models have 4 types of transaction models, namely: stock index futures hedge, commodity futures hedging, statistical hedging and option hedge. Among them, stock index futures hedging and commodity futures hedge are the most commonly used trading models. The stock index futures hedge refers to the use of unreasonable prices in the stock index futures market for hedging. Commodity futures hedging refers to the buying (or buying) to buy related contracts while buying (or selling) a certain futures contract, and at the same time of a certain period of time Essence classification 1, stock index futures hedge stock index futures hedge refers to the use of unreasonable prices in the stock index futures market, and at the same time participate in the stock index futures and stock spot market transactions, or at the same time, different periods and different (different periods (different periods But similar) category stock index contract transactions to earn different prices. The stock index futures arbitrage is divided into duration, sketching, cross -market hedging and cross -variety hedging. 2, commodity futures hedging is similar to the hedge of stock index futures. The product futures also have hedge strategies. While buying or selling certain futures contracts, it sells or buys related to another contract. At the same time, two contracts are cleared at the same time. In the form of transaction, it is similar to the hedging of the set period, but the hedging period is to buy (or sell) real goods in the spot market, and at the same time sell (or buy) futures contracts in the futures market; but the arbitrage is only in Trading contracts on the futures market does not involve spot transactions. There are four types of commodity futures arbitrage: hedging, cross -sectional hedging, cross -market arbitrage and cross -product arbitrage. 3, statistical hedge is different from risk -free hedging. Statistical hedging is a risk arbitrage by using the historical statistical law of securities prices. The risk is that this historical statistical law will be Whether it continues to exist. The main idea of statistical hedging is to find out the best correlation with investment varieties (stocks or futures, etc.), and then find out the long -term equilibrium relationship (coexistence relationship) of each pair of investment varieties. (Residuals of the consolidation equation) Began to build a position when they were deviated from to a certain degree -buying varieties that were relatively underestimated, and relatively overestimated varieties, and waited until the price spread returned to a balance. The main contents of statistical hedging include stock pairing transactions, stock index hedging, securities margin hedge and foreign exchange hedge transactions. 4, option hedge options (Option), also known as options, is a derivative financial tool generated on the basis of futures. In essence, options are essentially priced in the separation of rights and obligations in the financial field, so that the transferee of the rights must exercise its rights on whether to transaction within the specified time, and the obligations must perform. During the transaction of options, the party purchased by options is called the buyer, and the party who sells options is called the seller; the buyer is the assignee of the right, and the seller must fulfill the obligation of the buyer to exercise its rights. The advantage of options is that the income is unlimited and the risk loss is limited. Therefore, in many cases, the use of options to replace futures for short -term and hedging transactions will have smaller risks and higher yields than simply using futures arbitrage.
1. Hedge fund. It is a form of investment funds. It uses hedge, replacement, set, and set to make huge amounts of investment profits. Among them, it uses the hedge as the core of the transaction, and then combines a variety of transaction tools to carry out high -risk arbitrage.
2, risk hedge. The core of hedge funds lies in risk hedging. What is risk hedge? If Xiaoming does more gold, if he wants to hedge the risk of this order, he can use the same amount to make more dollars. When gold falls, the US dollar rises. At this time, the return of more dollars can make up for the loss of making more gold.
of course, hedge funds may have differentiated input amount and transaction time for the varieties with opposite attributes to obtain high profit returns from them.
Hedge Fund, also known as arbitrage fund or hedging fund. The word hedge (Hedge), originally intention to use the speculative method of using two parties to prevent losses in gambling, therefore referred to speculative funds buying and selling both in the financial market as hedge funds.
Sepan -hedging funds developed with the development of the US financial industry, especially futures and options. At present, there are at least 4,200 puppet funds in the United States, with total capital exceeding 300 billion US dollars.
1. The characteristics of hedge funds
The biggest feature of hedge funds is to carry out loan speculation transactions, that is, to buy short and short. About 85%of the hedge funds in the United States conduct loan speculation. After selecting the market or project, they use the capital with a small amount of capital to make huge amounts of loans at commercial banks, investment banks or stock exchanges, and then pour a lot of funds. The investment strategy is absolutely confidential. After the 1990s, the adventure coefficient of the US hedge fund became larger, but most of them were relatively successful.
2. The classification of hedge funds
The is distinguished by transaction methods, which can be divided into low -risk hedge funds, high -risk hedge funds and crazy hedge funds.
① Low risk hedge fund. It is mainly invested in stock markets in the United States and foreign countries. Generally, speculative transactions are rarely borrowed by borrowing loans above their own capital. The transaction method is mainly based on long -term sales, that is, the stock that may increase in the stock, borrow and sell stocks that may fall; after the market improves, buy back these stocks;
② high risk hedge funds. Often conducts speculative transactions at a loan of 25 times higher than capital, and not only conducts long -term sales in the global stock market, but also conducts large -scale speculative transactions in global bonds, currency and commodity futures. It is a quantum fund operated by Soros;
③ crazy hedge funds. Loans with more than ten times or even tens of times higher than their own capital are speculated in the international financial market. The most typical example of this hedge fund is the US long -term capital management fund. The company has loans more than $ 10 billion in banks with more than 4 billion US dollars assets, and the value of various securities and stock markets they buy and sell is as high as 12,500 The US dollar, resulting in the outbreak of the U.S. hedge fund incident in September 1998.
3. The difference between hedge funds and common funds
In broad, hedge funds are also a kind of common fund, but compared with the common fund n① Investor qualification. Investors in hedge funds have strict qualifications. The US Securities Law stipulates that participating in the name of personal names, with an annual income of at least $ 200,000 in the past two years; if they participate in the name of the family, the income of the couple in the last two years is at least 30 More than 10,000 US dollars; if you participate in the name of an institution, net assets are at least $ 1 million. New rules made in 1996: Participants expanded from 100 to 500. The condition of the participants is that individuals must have investment securities worth more than $ 5 million. There is no such limit for ordinary common funds.
② operation. The operation of hedge funds is not restricted, and the investment portfolio and transactions are rarely limited. The main partners and managers can use various investment technologies freely and flexibly, including short selling. Derivatives and leverage. And ordinary common funds are limited in operation.
③ supervision. Hedge funds are currently not subject to supervision. The US Securities Law in 1933, the 1934 Securities Trading Law, and the 1940 Investment Corporation Law stipulated that when the institutions of less than 100 investors were established, they did not need to register with the financial authorities such as the US Securities Management Commission, and they could be exempted from control. Because investors are mainly a few very sophisticated and wealthy individuals, they have strong self -protection ability. In contrast, the supervision of the common fund is relatively strict. This is mainly because investors are ordinary people. Many people lack the necessary understanding of the market. For the sake of avoiding the public risk, protecting the weak, and ensuring social security, strict supervision is implemented. Essence
④ fundraising method. Hedge funds are generally initiated through private equity, and securities law stipulates that it must not use any media to advertise when attracting customers. Investors are mainly involved in four ways: the so -called "reliable news" obtained in the upper society; the manager of a hedge fund is directly understood; transferred through other funds; from the investment bank. Special introduction of securities intermediary companies or investment consulting companies. And most of the common funds are mostly advertised through public offering to entertain customers.
⑤ Can it be established offshore. Hedge funds usually set up offshore funds, and the advantage is that the number of investors who can avoid US laws and avoid tax avoidance. It is usually located on the Tax Federation, Virgin Island, Bahamas, Bermuda, Cayman Island, Dublin and Luxembourg (). Among the $ 68 billion hedge funds statistics in November 1996, 31.7 billion U.S. dollars invested in offshore hedge funds. According to statistics, if the "fund's fund" is not included, the assets managed by the offshore fund are almost twice as much as the shore fund. And ordinary common funds cannot be set off offshore.
Funds that use hedge trading methods are called hedge funds, also known as hedging funds or hedging funds.
The financial funds that refer to financial derivatives such as financial futures and financial options and financial organizations are based on the purpose of profit.
It is a form of investment funds, which means "the fund of risk hedging". Hedge funds use various transaction methods to make huge profits with various transaction methods for hedging, replacement, clogs, and sets. These concepts have exceeded the category of traditional preventive risks and guarantee income operations. In addition, the legal threshold for initiating and establishing hedge funds is much lower than that of mutual benefit funds, which further increases the risks.
The hedge fund and securities investment funds for ordinary investors not only have a large difference in fund investors, fundraising methods, information disclosure requirements, and regulatory degree. There are many differences in the fairness and flexibility of investment activities.
If securities investment funds generally have a clear definition of asset portfolios. That is, there is a certain plan for the selection and proportion of investment tools. For example, a balanced fund refers to the general half of the stocks and bonds in the fund portfolio, and the growth fund finger focuses on the investment of high -growth stocks. The funds are investing, and the hedge fund has no restrictions and definitions at all. It can use all operating financial instruments and combinations to maximize the use of credit funds to earn excess returns from the average profit of the market.
I due to the heights and flexibility and leverage financing effects of the operation, hedge funds have played an important role in the speculative activities of the modern international financial market.
Funds that use hedge trading methods are called hedge funds, also known as hedging funds or hedging funds. It refers to financial funds that combine financial derivatives such as financial futures and financial options with financial instruments.
The hedge fund has 4 types of transaction models, namely: stock index futures hedge, commodity futures hedge, statistical hedge, and option hedge.
The stock index futures hedge and commodity futures hedge are the most commonly used transaction models. Among them, the symmetry of the stock index futures refers to the use of unreasonable prices in the stock index futures market for hedging to earn the difference in differences. There are several arbitrage methods for hedging, cross -sealing, cross -market hedging, and exaggerated hedging. rnrn而商品期货对冲类也类似于股指期货对冲，指的是在买入卖出某一种期货合约的同时，卖出或者是买入相关的另一种合约，并Two contracts at the same time at a certain time.
Hedge Fund refers to a fund that uses hedge trading methods. It is a financial fund that combines financial derivatives such as financial futures and financial options with financial instruments. It is a form of investment funds. Hedge funds are also based on the latest investment theory and extremely complicated financial market operation skills. They make full use of the leverage effectiveness of various financial derivative products, bear high -risk, and pursue high -yield investment models.
They -type transaction models have 4 types of transaction models, namely: stock index futures hedge, commodity futures hedging, statistical hedging and option hedge. Among them, stock index futures hedging and commodity futures hedge are the most commonly used trading models. The stock index futures hedge refers to the use of unreasonable prices in the stock index futures market for hedging. Commodity futures hedging refers to the buying (or buying) to buy related contracts while buying (or selling) a certain futures contract, and at the same time of a certain period of time Essence
classification
1, stock index futures hedge
stock index futures hedge refers to the use of unreasonable prices in the stock index futures market, and at the same time participate in the stock index futures and stock spot market transactions, or at the same time, different periods and different (different periods (different periods But similar) category stock index contract transactions to earn different prices. The stock index futures arbitrage is divided into duration, sketching, cross -market hedging and cross -variety hedging.
2, commodity futures hedging
is similar to the hedge of stock index futures. The product futures also have hedge strategies. While buying or selling certain futures contracts, it sells or buys related to another contract. At the same time, two contracts are cleared at the same time. In the form of transaction, it is similar to the hedging of the set period, but the hedging period is to buy (or sell) real goods in the spot market, and at the same time sell (or buy) futures contracts in the futures market; but the arbitrage is only in Trading contracts on the futures market does not involve spot transactions. There are four types of commodity futures arbitrage: hedging, cross -sectional hedging, cross -market arbitrage and cross -product arbitrage.
3, statistical hedge
is different from risk -free hedging. Statistical hedging is a risk arbitrage by using the historical statistical law of securities prices. The risk is that this historical statistical law will be Whether it continues to exist. The main idea of statistical hedging is to find out the best correlation with investment varieties (stocks or futures, etc.), and then find out the long -term equilibrium relationship (coexistence relationship) of each pair of investment varieties. (Residuals of the consolidation equation) Began to build a position when they were deviated from to a certain degree -buying varieties that were relatively underestimated, and relatively overestimated varieties, and waited until the price spread returned to a balance. The main contents of statistical hedging include stock pairing transactions, stock index hedging, securities margin hedge and foreign exchange hedge transactions.
4, option hedge
options (Option), also known as options, is a derivative financial tool generated on the basis of futures. In essence, options are essentially priced in the separation of rights and obligations in the financial field, so that the transferee of the rights must exercise its rights on whether to transaction within the specified time, and the obligations must perform. During the transaction of options, the party purchased by options is called the buyer, and the party who sells options is called the seller; the buyer is the assignee of the right, and the seller must fulfill the obligation of the buyer to exercise its rights. The advantage of options is that the income is unlimited and the risk loss is limited. Therefore, in many cases, the use of options to replace futures for short -term and hedging transactions will have smaller risks and higher yields than simply using futures arbitrage.
1. Hedge fund. It is a form of investment funds. It uses hedge, replacement, set, and set to make huge amounts of investment profits. Among them, it uses the hedge as the core of the transaction, and then combines a variety of transaction tools to carry out high -risk arbitrage.
2, risk hedge. The core of hedge funds lies in risk hedging. What is risk hedge? If Xiaoming does more gold, if he wants to hedge the risk of this order, he can use the same amount to make more dollars. When gold falls, the US dollar rises. At this time, the return of more dollars can make up for the loss of making more gold.
of course, hedge funds may have differentiated input amount and transaction time for the varieties with opposite attributes to obtain high profit returns from them.