by Hard Ass May 22, 2003
A type of investment fund with very high fees for investors and a focus on complex financial derivatives. Hedge funds charge around 20% of returns (sometimes a lot more) plus a flat fee of typically 2%.
Originally hedge funds were based on the concept of risk hedging; high-yield investments are always riskier than low-yield ones, so a fund manager could presumably put all the money in one instrument with enormous risk and hope for the best. That is, to put it bluntly, insane. So the manager uses a strategy of hedging risk as cheaply as possible, such as a very elaborate combination of derivatives that rise in value if the main asset declines in value.
Hedge funds are organized to be very exclusive, requiring a very long commitment and limited membership. The managers are much more daring and will take much more aggressive risks than mutual funds.
Originally hedge funds were based on the concept of risk hedging; high-yield investments are always riskier than low-yield ones, so a fund manager could presumably put all the money in one instrument with enormous risk and hope for the best. That is, to put it bluntly, insane. So the manager uses a strategy of hedging risk as cheaply as possible, such as a very elaborate combination of derivatives that rise in value if the main asset declines in value.
Hedge funds are organized to be very exclusive, requiring a very long commitment and limited membership. The managers are much more daring and will take much more aggressive risks than mutual funds.
The largest hedge fund company is JP MorganChase.
During the first decade of the '00's, hedge funds outperformed most other asset classes. But when they melt down, like LTCM in 1997, it can be a huge event.
During the first decade of the '00's, hedge funds outperformed most other asset classes. But when they melt down, like LTCM in 1997, it can be a huge event.
by Sorry, the good guys lost September 4, 2010
The literary exchange mechanism by which pre-internet British children exchanged porn. Mags were placed in known hedges, to be taken or swapped as desired by other males.
How did you find this copy of Razzle? Under your dad's bed?
No, it's hedge porn, I found it in a lay-by.
No, it's hedge porn, I found it in a lay-by.
by QuarticStrumming August 14, 2015
(FINANCE) a limited liability partnership (LLP), originally limited to 99 partners, and organized to trade securities under specialized guidelines. The first hedge funds were organized to be a counterparty to the riskiest forms of derivative transactions: writing exotic options or swaps in which the buyer transferred most risks (and potential gains) to the hedge fund, but then offsetting the risk with different derivatives.
The first hedge funds benefited (or thought they benefited) from the Black-Scholes formula used to calculate the value of options; supposedly a hedge fund manager could design an immensely complex portfolio consisting mainly of explosively volatile instruments , whose pieces were supposed to absorb each other's risk.
Hedge funds mainly avoided the consequences of the financial meltdown they helped create, racking up gains through the '00's that far exceeded the rest of the stock market.
The first hedge funds benefited (or thought they benefited) from the Black-Scholes formula used to calculate the value of options; supposedly a hedge fund manager could design an immensely complex portfolio consisting mainly of explosively volatile instruments , whose pieces were supposed to absorb each other's risk.
Hedge funds mainly avoided the consequences of the financial meltdown they helped create, racking up gains through the '00's that far exceeded the rest of the stock market.
The hedge fund used to play a major role in absorbing and structuring the risks associated with hedging risks associated with large portfolios, but they now are sophisticated gambling enterprises.
Hedge funds supply market liquidity for the most exotic of instruments.
Hedge funds supply market liquidity for the most exotic of instruments.
by Abu Yahya September 1, 2010
by waz funnell June 8, 2010
by Knowledgeable1! November 24, 2009
verb. To hedge dive. To run at, and jump through, over, along or onto a hedge or bush. This may then be combined with other crazy stunts eg jumping off wroxham bridge and catapulting "tic tacs" at each other and filmed. this "film" may then be watched back at parties and social gatherings in order to provoke laughter and show just how manly the participants as it is quite dangerous and has caused savere injuries.
Me: Hey you guys, it's four o'clock in the morning and we have nothing to do. Lets go hedge diving and film it.
15 mins later
Darren: Hey guys i think i've broken my ankle, no joke.
Me: God my head hurts.
15 mins later
Darren: Hey guys i think i've broken my ankle, no joke.
Me: God my head hurts.
by Yarham January 4, 2005