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Hedge funds are often loosely regulated and usually are much less transparent than traditional investment funds. That helps them to trade more stealthilyt. Funds typically have minimum investments periods, and charge fees based both on funds under management and on performance.Hedge funds use investment techniques that are usually forbidden for more traditional funds , including "short selling: stock - that is borrowing shares to sell them in the hope of buying them back later at a lower price - and using big leverage rhrough borrowing.

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The favoured strategies tend to change. It has been said that the hedge-fund industry was equity driven but that now in 2006 there is less long/short. It seems to be a much more diverse picture in 2006 with less of a concentrated exposure format.Convertible arbritrage : This involves going long in the convetible securities ( that is usually shares or bonds) that are exchangeable for a certain number of another form ( usually common shares) at a preset price , and simultaneously shorting the underlying equities.Emerging markets : Investing in securities of companies in the ever emerging economies through the purchase of sovereign or coporate debt and /or shares. Emerging markets : Investing in securities of companies in the ever emerging economies through the purchase of sovereign or coporate debt and /or shares. Global Macro - Investing in shifts between global economies , often using derivatives to speculate on interest-rate or currency moves.


 

 

 

 

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