Global Investment Lastly

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Short Selling They may short sell assets that they believe are priced too high, hoping that the price will decrease and they can buy them at a lower price to make a profit. Leverage They can also use leverage to increase their investment capacity. This will increase the possible profits but also the risks. Investment flexibility Hedge funds have greater freedom to invest in different types of assets and investment strategies than traditional investment funds. they can also invest in different markets and regions of the world, which helps them take advantage of investment opportunities in different geographic areas.


History and journalistic origins of hedge funds The most ID Number List speculative investment funds, known as hedge funds, have their origins in a newspaper editorial office. In , after the Great Depression and the Second World War, the markets had to look ahead. “Fortune” magazine commissioned a sociologist, Alfred W. Jones, with a research project to try to find out the behavior of markets. As part of this research, Alfred W. Jones decided to combine long and short positions in the same fund, that is, he bet on the rise of the stock market and its fall, to cover market oscillations .





Therefore, a new investment product was born here, hedge funds. In the following decades other fund managers began to use similar strategies with short selling, diversification and leverage techniques and the number of hedge funds began to skyrocket. It is estimated that by the end of there were already about around the world. How hedge funds work What hedge fund investors are looking for is to obtain a return separate from conventional assets such as stocks, bonds or public debt.