Hedge Fund Strategies

Free CFA Level II lesson in Alternative Investments. 14 min read, ~2,094 words.

Six families: equity long/short, event-driven, relative value, global macro, managed futures, multi-strategy. Classify by source of profit, corporate event (event-driven), price convergence (relative value), or neither. Net exposure = directional sensitivity. Gross exposure = leverage. Managed futures / CTAs have positive convexity, they profit most during sustained equity crashes (crisis...

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