Equity Hedge Funds
Free CAIA Level I lesson in Hedge Funds. 30 min read, ~4,456 words.
Equity hedge funds share three features (stock picking, leverage, long and short positions) and differ mainly in net exposure and style tilt, not toolkit. Return decomposes into alpha (selection), beta (net market exposure), and factor tilts (value, momentum, quality, size); alpha is the residual after stripping the other two. Funds...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- distinguishing
- short selling
- returns allocation
- multistrategy
- research
- indices
- macro overview
- macro
- managed futures
- systematic trading
- trend following
- mf dimensions
- systematic construction
- mf benefits
- mf evidence
- mf fund benefits
- event sources
- activist investing
- activism outcomes
- merger arb
- distressed securities
- event multi special
- rv overview
- convertible arb overview
- convertible arb drivers
- vol arb overview
- vol arb strategies
- fi arb
- rv multistrategy
- equity commonalities
- sources of return
- market anomalies
- anomaly strategies
- equity shorts
- three strategies
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