Hedge Fund Long Volatility

Hedge funds are open to a limited number of investors and require a significant initial investment. Hedge fund volatility characterizes fluctuations in asset prices. It is one of the main factors influencing the assessment of investment risk.

List of strategies

Hedge funds can use different investment strategies:

• Long/short equity – focused on maximizing returns that are independent of broader market indices; includes buying undervalued (their value will increase) and shorting overvalued stocks;
• event management – focuses on capitalizing on specific corporate events that have the potential to affect a company’s share price
• global macro – focuses on macroeconomic trends;
• relative value – involves identifying and capitalizing on price discrepancies between related securities;
• distressed debt – focuses on investing in companies with financial problems.