Hedge Funds
Free CFA Level I lesson in Alternative Investments. 14 min read, ~2,066 words.
Hedge funds use leverage, shorting, and derivatives to chase absolute returns; minimums are high, liquidity is restricted, and investors must be accredited or qualified. Four strategy buckets: equity hedge, event-driven, macro/CTA, relative value. Multi-strategy and funds-of-funds combine them. Standard vehicle: limited partnership. Master-feeder structure routes US (onshore LP) and non-US/tax-exempt...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- hedge funds
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