Questions tagged [hedge-funds]

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In Reddit vs. Wall Street, what are the ramifications of those who had money with the bankrupt firms?

Story: Gamestop: 'Failing' firm soars in value as amateurs buy stock My question is about the impact of such a "stick it to the man" approach that amateur investors on Reddit used. I understand that they took advantage of detecting firms shorting…
Jent
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Closing Shorted Positions via Short Ladder Attacks

From my understanding in a short ladder attack investors bid lower and lower prices to drive down the stock value. I assume in many cases this will scare retail investors into selling further compounding the downward price. Specifically, in the case…
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High-risk investing is better for the young? Why?

I have heard statements such as the question's time. Basically, it's a financial motto: "If you're young, take on more risk." I don't really understand it. I figured risk-tasking is a personal/personality kind of thing -- not necessarily a young vs.…
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Can (did already) the GME-related hedge funds cover the $5 billion?

Yet another GME question I'm afraid. Straightforward... The GME-related hedge fund(s?) in question lost about $5 billion. Thus, they have to send a cheque for $5 billion† to their broker(s), and/or other wise have to "give someone" five billion…
Fattie
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Is there a way to confirm if a hedge fund indeed closed their short positions on a stock?

According to a recent Bloomberg article: Melvin Capital closed its position after repositioning its portfolio, according to a spokesperson. Citron Capital’s Andrew Left also said Wednesday that the firm covered the majority of its GameStop short…
JonathanReez
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In a hedge fund, what is a "Partner"?

I will be meeting with representatives of a hedge fund (doing HFT FX trading), one of whom is titled "Partner". In the context of a hedge fund, what is the role of a "Partner"?
Randomblue
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Where to find historical hedge fund returns?

Where can I find historical hedge fund return information? Are there any free resources?
daniel s
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How are assets stripped before bankruptcy?

This New Yorker article says ...hedge funds and private equity have used leveraged buyouts to purchase chains like Sears and Toys R Us, and then stripped their assets, including real estate, en route to bankruptcies. ...encouraging investors to…
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static data for mutual funds/hedge funds

What is the meaning of the phrase 'static data' as applied to a hedge fund or a mutual fund? Or is it purely a programmer's lingo with little business meaning? The words taken individually do hint it is programmers lingo:)
Victor123
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Who are the market makers in options trading?

Can you give some examples? Are hedge funds also market makers?
ROHAN PAUL
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What does it mean to be a "total return fund"?

I heard somebody describe a hedge fund as a "total return fund", as opposed to a standard mutual fund. I don't understand what "total return" is supposed to mean in this context. I understand that hedge funds use leverage, derivatives,…
Mickeoew
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In the movie "The Wizard of Lies" Madoff was raising money for an exclusive fund. What investment reason would there be for making a fund exclusive?

The movie "The Wizard of Lies" is a movie about Bernie Madoff's story running his Ponzi scheme. There is a scene where he realizes that he is low on money, so he tries to convince an investor to invest a large sum of money. He says that there is a…
HanMah
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When hedging with CFDs, buying and selling the same financial instrument, don't you end up earning nothing respectively losing because of the spread?

When hedging with CFDs, buying and selling the same financial instrument, don't you end up earning nothing respectively losing because of the spread?
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How do I interpret max drawdown and annualized standard deviation?

I'm studying hedge funds and I'm looking at two figures that I'm not sure how to interpret: The first is Max Drawdown, which I see scaling from 0 to -30ish. Is Fund A with a MDD of -15 more or less volatile than Fund B with a MDD of -30? The second…
Citizen
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If investment banks can invest clients' money, what makes them different from hedge funds?

I am a bit confused right now about what a hedge fund is. If Investment Banks can invest the money entrusted to them by clients, what makes someone want to invest with a hedge fund?
Sean Taylor
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