BNET Business Dictionary

Business Definition for: Hedge Fund

  • a mutual fund that takes considerable risks, including heavy investment in unconventional instruments, in the hope of generating great profits

Wiktionary Definition for: Hedge Fund

  • #Any unregistered investment fund, often characterised by unconventional strategy strategies (i.e., strategies other than investing long only in bonds, equity equities or money markets).

Additional Resources

The Great Hedge Fund Unwind Is Gaining Speed
In the coming months, the number of hedge funds will plummet. Pressured by the massive consolidation within the commercial banking industry and fallout from the global credit crunch, hedge fund industry consolidation --which began a few years ago -- is accelerating. Presently, the hedge fund industry is worth...
Tags: Hedge Fund, Hedge Fund Unwind, Investment, Financial Services, Finance, Robert Reed
Blog posts 2008-10-06
Hedge -Fund Benchmarks: Information Content and Biases
The article discusses the information content and potential measurement biases in hedge-fund benchmarks. Hedge-fund indexes built from databases of individual hedge funds inherit the measurement biases in the databases. In addition, broad-based indexes mask the diversity of individual hedge-fund return characteristics. Consequently, these indexes provide incomplete information to investors seeking...
Tags: Hedge Fund, Index, Investor, Financial Accounting, Investment, Financial Services, Finance
White papers 2002-02-01
Citadel's Top Hedge Fund, CEO Under Siege
Citadel Investment Group, one of the world's largest hedge fund managers, is under heavy attack. And that's making Ken Griffin, the company's founder, fighting mad. Chicago-based Citadel, with nearly $20 billion under management, is reeling from what Griffin is labeling the "single-worse month, by far, in the...
Tags: Hedge Fund, Citadel Security Software, Ken Griffin, Investment, Financial Services, Finance, Robert Reed
Blog posts 2008-10-16
Hedge Fund "king" Griffin Rebounding From Losses - Report
NEW YORK (Reuters UK) - Hedge fund manager Kenneth Griffin's Citadel Investment Group lost $8 billion (4.8 billion pounds) in clients' money last year, but is turning things around as markets recover and has made $5 billion in profits so far this year, the Wall Street Journal said on Wednesday.The...
Tags: Hedge Fund, Citadel Security Software, Investment, Financial Services, Finance, Oukbs
News items 2009-11-18
Hedge Fund "king" Griffin Rebounding From Losses - Report
NEW YORK (Reuters UK) - Hedge fund manager Kenneth Griffin's Citadel Investment Group lost $8 billion (4.8 billion pounds) in clients' money last year, but is turning things around as markets recover and has made $5 billion in profits so far this year, the Wall Street Journal said on Wednesday....
Tags: Citadel Security Software, Hedge Fund
News items 2009-11-18
Hedge Fund "king" Griffin Rebounding From Losses: Report
NEW YORK (Reuters) - Hedge fund manager Kenneth Griffin's Citadel Investment Group lost $8 billion in clients' money last year, but is turning things around as markets recover and has made $5 billion in profits so far this year, the Wall Street Journal said on Wednesday.The report said Griffin is...
Tags: Hedge Fund, Citadel Security Software, Investment, Financial Services, Finance, Us
News items 2009-11-19
Understanding Hedge Fund Performance: Research Results and Rules of Thumb for the Institutional Investor
"During the past decade hedge fund investments offered investors increased returns while reducing risk through diversification. Recent advances in understanding the factors that drive hedge fund returns indicate the benefits of macro factor analysis (e.g., market factor-based models of return estimation) as well as micro factor analysis (e.g., fund based...
Tags: Performance, Hedge Fund, Investor, Investment, Financial Services, Performance Management, Finance, Human Resources, Workforce Management
White papers 2001-11-01
Making Sense of Hedge Fund Returns: What Matters and What Doesn't
While the past year has seen much discussion of performance a few notable hedge fund failures, there has been relatively little effort to consider systematically the sources of returns to hedge funds in general. Consideration needs to be devoted to the economic determinants of hedge fund returns both during periods...
Tags: Hedge Fund, Investment, Financial Services, Finance
White papers 2003-01-01
Former Hedge Fund Executive Charged By SEC
By Svea Herbst-BaylissBOSTON (Reuters) - A former top executive at hedge fund firm ValueAct Capital is one of seven people charged with trading on inside information in Acxiom Corp.Ronald Yee, who had been the San Francisco-based hedge fund firm's chief financial officer until June 2008, was named in a civil...
Tags: Hedge Fund, SEC, Investment, Financial Services, Finance, Ronald Yee, Us, ValueAct Capital
News items 2009-10-31
Former U.S. Hedge Fund Exec Charged
By Svea Herbst-BaylissBOSTON (Reuters UK) - A former top executive at hedge fund firm ValueAct Capital is one of seven people charged with trading on inside information in Acxiom ACXM.Ronald Yee, who had been the San Francisco-based hedge fund firm's chief financial officer until June 2008, was named in a...
Tags: Acxiom Corp., Hedge Fund, SEC, Investment, Financial Services, Finance, Ronald Yee, ValueAct Capital
News items 2009-10-31
Dow Jones Newsletters Launches New Publication on Flourishing Hedge-Fund Industry; New ``Hedge Fund Trades'' Will Focus on Hedge-Fund Investment, Strategy and Performance
NEW YORK -- Dow Jones Newsletters today launched a new weekly publication, "Hedge Fund Trades," that covers the thriving hedge-fund industry in the U.S. and around the globe. In the inaugural issue, "Hedge Fund Trades" examines how hedge funds are playing the retail sector; how one manager is putting options...
Tags: Dow Jones & Company Inc., hedge fund, newsletter, performance
Research articles 2005-10-24
Yale SOM Course Spotlight: Pitching a Hedge Fund
"The best way to learn about hedge funds is to work at one," says Leon M. Metzger, who teaches a course on hedge funds at Yale School of Management. "In this class, we try to simulate the experience, from start to finish." A 45-page hedge fund-style offering memorandum, a.k.a. the...
Tags: Yale University, Hedge Fund, Investment, Financial Services, Finance, Stacy Blackman
Blog posts 2009-01-06
Hedge Fund Indexes: Benchmarking The Hedge Fund Marketplace
Initially, hedge funds were the domain of high-net-worth individuals. However, in the latter half of the 1990s, large institutional investors discovered the charms of these investments. Endowments were first, followed by corporate and public pension plans. As more and more institutional investors entered the hedge fund arena, they demanded many...
Tags: Benchmarking, Hedge Fund, Investment, Financial Services, Finance
White papers 2003-07-01
Welcome to the Dark Side: Hedge Fund Attrition and Survivorship Bias Over the Period 1994-2001
Hedge funds exhibit a high rate of attrition that has increased substantially over time. Using data over the period 1994-2001, the article shows that lack of size, lack of performance and an increasingly aggressive attitude of old and new fund managers alike are the main factors behind this. Although attrition...
Tags: Attrition, Hedge Fund, HedgeWorld, Investment, Financial Services, Finance
White papers 2001-12-11
Making Sense of Hedge Fund Returns: What Matters and What Doesn't
While the past year has seen much discussion of performance a few notable hedge fund failures, there has been relatively little effort to consider systematically the sources of returns to hedge funds in general. Consideration needs to be devoted to the economic determinants of hedge fund returns both during periods...
Tags: Hedge Fund, HedgeWorld, Investment, Financial Services, Finance
White papers 2003-01-01
2002: A Disappointing Period For Hedge Fund-of-Funds?
With the median manager in the Rocaton Non-Directional Hedge Fund-of-Funds Universe up a meager 135 basis points through September 2002, the year has thus far been somewhat of a disappointment for investors expecting a "T-Bill plus" return from their hedge fund-of-funds investments. With the S&P 500 down 28.2% through September...
Tags: Hedge Fund, Equity, Investor, Manager, Rocaton Investment Advisors, Investment, Financial Services, Financial Accounting, Finance
White papers 2002-12-01
Asset-Based Hedge-Fund Styles and Portfolio Diversification
It is a well-documented stylized fact that hedge fund returns differ from the returns of traditional asset classes. Investors looking for alternative return characteristics in hedge funds are clearly concerned about the question of consistency. To go beyond relying on historical hedge fund performance repeating itself, one needs to answer...
Tags: Asset, Asset Class, Hedge Fund, Asset Management, Investment, Financial Services, Operational Planning, Business Operations, Finance
White papers 2001-08-02
'Synthetic' hedge funds an alternative investment; Index-based vehicles offer hedge fund returns on the cheap.(News)
Byline: Riva Froymovich NEW YORK - As regulators consider ways to clamp down on hedge funds, financial services companies have begun launching passively managed hedge fund alternatives that shoot for hedge fund returns but not their prices. ...
Tags: hedge fund, Merrill Lynch & Co. Inc.
Research articles 2006-12-18
The CEO Hedge Fund Scourge
For under-performing CEOs, hedge funds can be a frightful scourge that can force board changes resulting in their ouster. Yet, the perennial debate about hedge fund regulation is taking on a new urgency since some are being blamed for contributing mightily to the sub prime mess and credit squeeze. ...
Tags: Hedge Fund, Investment, Financial Services, Peter Galuszka, Finance
Blog posts 2008-04-16
JPMorgan Hedge Fund Services to Provide Fund Administration and Custody Services to Over US$10bn of FRM Fund of Hedge Funds Assets.(Company overview)
LONDON, September 19 /PRNewswire/ -- JPMorgan Hedge Fund Services today announced it has been appointed to provide Fund Administration and Custody services to funds of hedge funds managed by Financial Risk Management FRM. LONDON, September 19 /PRNewswire/ -- ...
Tags: Administration, J.P. Morgan Chase & Co.
Research articles 2007-09-19
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