Hedge fund: related pages

A collective investment vehicle that invests in other funds.

Trading in investments a bank does with its own money putting its own capital at risk.

A specialist in the mathematical techniques of finance. Often called "quant" or "rocket scientists".

Making a gain through trading securities without committing or risking money.

The alpha of a security or fund is its out-performance over the risk adjusted return, with risk measured by beta.

An absolute return is the actual amount of money made by an investment ; the actual gain as a percentage of the amount invested.

A market neutral trading strategy based on expected reversions to past relationships between securities prices.

Portable alpha is a process that allwos the addition of one portfolio’s alpha to another, without affecting the second portfolio’s beta.