Research Article
Open access
Published on 13 September 2023
Download pdf
Yin,M. (2023). Research on Different Hedge Fund Strategies. Advances in Economics, Management and Political Sciences,14,194-202.
Export citation

Research on Different Hedge Fund Strategies

Mingrui Yin *,1,
  • 1 Tianjin University of Commerce

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/2754-1169/14/20230820

Abstract

People are always pursuing the minimum risk while seeking for maximum profit when investing, so they often use a variety of different strategies or portfolios to reduce investment risk. Among these, hedge funds are the most common type of portfolio used by fund managers. By using different strategies to buy different stock portfolios, hedge funds can effectively hedge the risk of a single stock or fund, so as to minimize the risk. However, hedge funds contain many different strategies and not all the strategies can process effectively in the market. We must analyze the market and pick up the most suitable strategy. In this case, this article will discuss the effect of their actual operation in the market based on these strategies. The article will analyze five different hedge fund strategies, including three trades that are relatively successful and two trades which are relatively not so successful. Then the article will deeply analyze the reason why the strategy can fit the market or why did it fail the market. During the analysis, some strategies are suitable for the market while the other are not.

Keywords

hedge fund, strategy, investment portfolio

[1]. Ang, A., Gorovyy, S., & van Inwegen, G.: Hedge Fund Leverage. SSRN Electronic Journal, 102(1). (2010).

[2]. Aslan, H., & Kumar, P.: The product market effects of hedge fund activism. Journal of Financial Economics, 119(1), 226–248. (2016)

[3]. Bali, T. G., Brown, S., & Caglayan, M. O. (2013). Macroeconomic Risk and Hedge Fund Returns. SSRN Electronic Journal, 114(1). (2013).

[4]. Ben-David, I., Franzoni, F. A., Landier, A., & Moussawi, R. (2011). Do Hedge Funds Manipulate Stock Prices? SSRN Electronic Journal, 68(6). (2011).

[5]. Bollen, N. P. B., & Whaley, R. E. (2007). Hedge Fund Risk Dynamics: Implications for Performance Appraisal. SSRN Electronic Journal, 64(2). (2007).

[6]. Brav, A., Jiang, W., & Kim, H. (2015). The Real Effects of Hedge Fund Activism: Productivity, Asset Allocation, and Labor Outcomes. Review of Financial Studies, 28(10), 2723–2769. (2015).

[7]. Eling, M. (2009). Does Hedge Fund Performance Persist? Overview and New Empirical Evidence. European Financial Management, 15(2), 362–401. (2009).

[8]. Fung, W., & Hsieh, D. A. (2011). The risk in hedge fund strategies: Theory and evidence from long/short equity hedge funds. Journal of Empirical Finance, 18(4), 547–569. (2011).

[9]. Jayaraman, A., Kuhnert, M., Gubler, J., & Theers, R. (2017). To Hedge or Not to Hedge: Factor Dependence and Skill among Hedge Funds. The Journal of Alternative Investments, 20(1). (2017).

[10]. Klein, S. L. (2004). Evaluating Hedge Fund Performance: Traditional versus Conditional Approaches. CFA Digest, 34(3), 11–12. (2004).

[11]. Ostrovsky, K. (2011). Do the Best Hedge Funds Hedge? CFA Digest, 41(2), 6–7. (2011).

[12]. Ramtohul, I. (2018). Returns to Hedge Fund Activism: An International Study. CFA Digest, 48(4). (2018).

[13]. Sackley, W. H. (2010). Hedge Funds for Retail Investors? An Examination of Hedged Mutual Funds. CFA Digest, 40(1). (2010).

Cite this article

Yin,M. (2023). Research on Different Hedge Fund Strategies. Advances in Economics, Management and Political Sciences,14,194-202.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

Disclaimer/Publisher's Note

The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.

About volume

Volume title: Proceedings of the 2nd International Conference on Business and Policy Studies

Conference website: https://2023.confbps.org/
ISBN:978-1-915371-71-3(Print) / 978-1-915371-72-0(Online)
Conference date: 26 February 2023
Editor:Canh Thien Dang, Javier Cifuentes-Faura
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.14
ISSN:2754-1169(Print) / 2754-1177(Online)

© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license. Authors who publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See Open access policy for details).