Showing posts with label hedging. Show all posts
Showing posts with label hedging. Show all posts

Saturday, 10 September 2011

Are all Hedge Funds hedged?

No. Not all hedge funds are hedged. Many are simply long stocks, and may even use leverage. One must ascertain on a case by case basis, therefore, whether a fund hedges, how, and how much. This is absolutely crucial to understanding a fund's performance. Without this information, one cannot gauge how much risk produced its return.

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