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== == Hedge Funds assume very high risk exposures, as compared for example to the risk exposure related to investing in S&P 500 index. They aim to obtain significantly higher total returns than those achieved by broad market indices (e.g., DJI). To achieve this goal, hedge funds leverage their core capital by borrowing money against the holdings in hopes of achieving greater return on borrowed capital than the cost of the loan. The other way of undertaking greater leverage (grater risk in hopes of higher than average returns) is by use of derivative instruments such as futures and options.

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What is the mean of hedge?

The meaning of a "hedge" would be best described as a "hedge of protection" against the volatile market. Also used in the term Hedge Fund


What does it mean to be a partner in a hedge fund?

A partner in a hedge fund is an investor. Usually the hedge funds are limited partner legal entities. The investors are the limited partners and the investment manager is the general partner.


What does SLF mean in banking terms?

SLF = Syndicated and Leveraged Finance


What is the average income of a hedge fund manager?

Even if you knew the average income of a hedge fund manager, it probably wouldn't mean much since the distribution is very skewed. Out of 13,000 hedge funds, the 100 largest funds manage over $3 Billion. I do know that the average top hedge fund manager (top meaning large AUM, good returns, good/smart/talented team) makes well over $100 million (maybe closer to a quarter million) each year on a good year. Their earnings distribution is very volatile as well since most of their earnings come from incentive pay based on their performance. So if they had a rough year, then they wouldn't be making as much (it will still be in the millions though). Hope I somewhat answered your question


What is the meaning of hedge fund and why they are called hedge funds what was their role in us sub prime mortgage crises?

A hedge fund, as the name suggests, is a fund that has "hedges"--or preventative measures--in place so that the fund will (theoretically) do well in a bull or bear market. That might mean that hedge fund managers buy stocks for the long haul, while also shorting stocks or buying options in case stock prices go down, for example. They might also make big bets on certain sectors (such as natural resources or the mortgage market) that can earn huge returns if they're right--or cause the fund to go bust if they're wrong (as well as shaking up Wall Street in general. So much for the "hedges.") They played a role in the subprime mortgage crisis because they purchased subprime mortgages (repackaged as bonds) to such a degree that banks, mortgage brokers, etc. lost sight of their primarily responsibility (i.e., loaning money only to people who could afford to buy a house) because the banks didn't have to keep the loans on the books: they essentially sold them to hedge funds and other investors. So, if one side--the hedge funds--is willing to buy risky subprime loans (in the hopes of big profits), the other side--the banks, etc.--are going to be far more willing to make those loans (in the hopes of big profits). Then, when the borrowers (the home buyers) have trouble paying their mortgages, the hedge funds are going to be hit...but only if they haven't already sold those loans-repackaged-as-bonds to some other sucker. In short, the hedge funds helped create the atmosphere of easy credit for people who couldn't afford home loans. Moreover, since hedge funds also have a way to make money when the market goes down (because they short stocks, etc.), they also can profit by hyping doom and gloom. Thus, even though the subprime mortgage market is a relatively small part of the U.S. economy, you'd never guess it from all the press it's getting now. "

Related Questions

What is the mean of hedge?

The meaning of a "hedge" would be best described as a "hedge of protection" against the volatile market. Also used in the term Hedge Fund


What does it mean to be a partner in a hedge fund?

A partner in a hedge fund is an investor. Usually the hedge funds are limited partner legal entities. The investors are the limited partners and the investment manager is the general partner.


What does hedge clipper mean in German?

hedge clippers = Heckenschere


What does SLF mean in banking terms?

SLF = Syndicated and Leveraged Finance


What is the average income of a hedge fund manager?

Even if you knew the average income of a hedge fund manager, it probably wouldn't mean much since the distribution is very skewed. Out of 13,000 hedge funds, the 100 largest funds manage over $3 Billion. I do know that the average top hedge fund manager (top meaning large AUM, good returns, good/smart/talented team) makes well over $100 million (maybe closer to a quarter million) each year on a good year. Their earnings distribution is very volatile as well since most of their earnings come from incentive pay based on their performance. So if they had a rough year, then they wouldn't be making as much (it will still be in the millions though). Hope I somewhat answered your question


What word mean both a row of bushes and to prevent someones freedom?

Hedge can have both of these meanings.Though the usual idiom is 'don't hedge me in', 'don't hedge me' is also possible.


When can you prune a beech hedge?

If you mean a beech hedge then August in the Northern Hemispere is best. If it is a tree there should be no need to prune it other than to shape it and you can do this at any time. If you do that too often it will become a hedge and be best done in August.


How many people invest in mutual in India 2012?

If you mean "mutual fund", I am one. I have an India Growth fund. The country has a democratic government, median age in the 30ths, highly educated and the country has excellent infrastructure. I look to them to be a big power in import/export in coming years.


What would you find at stone hedge?

dont you mean stone edge. GET A CHEAT!


What is the meaning of hedge fund and why they are called hedge funds what was their role in us sub prime mortgage crises?

A hedge fund, as the name suggests, is a fund that has "hedges"--or preventative measures--in place so that the fund will (theoretically) do well in a bull or bear market. That might mean that hedge fund managers buy stocks for the long haul, while also shorting stocks or buying options in case stock prices go down, for example. They might also make big bets on certain sectors (such as natural resources or the mortgage market) that can earn huge returns if they're right--or cause the fund to go bust if they're wrong (as well as shaking up Wall Street in general. So much for the "hedges.") They played a role in the subprime mortgage crisis because they purchased subprime mortgages (repackaged as bonds) to such a degree that banks, mortgage brokers, etc. lost sight of their primarily responsibility (i.e., loaning money only to people who could afford to buy a house) because the banks didn't have to keep the loans on the books: they essentially sold them to hedge funds and other investors. So, if one side--the hedge funds--is willing to buy risky subprime loans (in the hopes of big profits), the other side--the banks, etc.--are going to be far more willing to make those loans (in the hopes of big profits). Then, when the borrowers (the home buyers) have trouble paying their mortgages, the hedge funds are going to be hit...but only if they haven't already sold those loans-repackaged-as-bonds to some other sucker. In short, the hedge funds helped create the atmosphere of easy credit for people who couldn't afford home loans. Moreover, since hedge funds also have a way to make money when the market goes down (because they short stocks, etc.), they also can profit by hyping doom and gloom. Thus, even though the subprime mortgage market is a relatively small part of the U.S. economy, you'd never guess it from all the press it's getting now. "


What does mutual fund mean?

by loser


What does love your neighbor but cut down your hedge mean?

never saw your neighbor before and