Carry strategies have become a powerful tool in asset management, offering unique opportunities to enhance returns. These strategies involve profiting from price differences in related assets across different markets or periods. Asset managers and traders increasingly turn to carry trading to diversify their portfolios and boost performance in various market conditions. Understanding carry strategies is …

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Data analytics has revolutionized the investment landscape, offering unprecedented insights into market trends and financial patterns. In today’s fast-paced financial world, investors and hedge fund managers increasingly turn to data-driven approaches to gain a competitive edge. This shift profoundly impacts portfolio optimization and decision-making processes, allowing for more strategic investments. The Role of Big Data …

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Hurdle rates are the lowest rates that an investor or a fund manager deem acceptable. Part of the hurdle rates debate stems from the fact that the fund managers make their money through performance fees when the investments do well, but they don’t pay a penalty when the investments do poorly. Meanwhile, the investors do …

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When equity markets are behaving normally, bond yields correlate with their maturity dates. In other words, a bond that matures in a decade will have a higher yield than one that matures in three months. However, in some cases, you’ll see an inverted yield curve in which shorter-term debts have a higher rate of return …

Is An Inverted Yield Curve A Reliable Indicator For Hedge Funds? Read More »

Information gathered from investors between 2022 and 2024 sheds light on the sorts of investment strategies fund managers are favoring. This gives us a bird’s-eye view of the demand for each technique and how investors’ preferences change over time. More importantly, it gives us a clear picture of alternative investment trends that hedge fund managers …

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In recent years, investors have shown more interest in calls as one of many options-style trading strategies available to produce income. Investors like the idea of a limited short-term risk for a limited return while waiting for market changes to provide them with better opportunities. The popularity of covered calls as a long-term, low-risk strategy …

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The hedge fund industry constantly evolves, and its dynamic nature allows those who adapt and embrace change to thrive. At the same time, though, those who do not adjust to the transformative nature of the industry are likely to suffer. Staying on top of the latest industry trends is crucial, and it is also helpful …

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One of the hottest investment trends of the past few years has been liquid alternative exchange-traded funds, also known as liquid alts or liquid alt ETFs. Investment strategies involving these specialized funds have enjoyed significant growth in popularity, although some argue that the prices charged by money managers are too high. First, let’s take a …

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For those who might have missed it, artificial intelligence (AI) is taking the U.S., and arguably the world, by storm. To appreciate why this is happening, we should probably take a moment to familiarize ourselves with AI is and its ever-growing role in our day-to-day lives. In short, AI is an umbrella term for numerous …

What Kind of Impact Could Artificial Intelligence (AI) Have On Markets? Read More »

In a modern world characterized by uncertainty and risk, a growing number of investors are looking to hedge funds as a means to shield their assets against volatility, produce more predictable returns, and secure their financial future. But as with any other investment vehicle, knowing whether hedge funds have historically mitigated downside risk and acted …

Have Hedge Funds Successfully Mitigated Downside Risk Over The Past 20 Years? Read More »