A Hedge Fund known for almost 70 years. In the domestic market, they came much later, so few investors can confidently answer the question: "What is a hedge Fund?". About the features of their work and the possibility of earning money with the help of these funds will be discussed in this article.
The American was the Creator of the first hedge Fund. It happened in 1949. However, there is evidence that in the years of the great Depression was the background to the establishment of such schemes. However, the precarious position in the market prevented the development of such areas.
Hedge funds are very important for business investment. Their mass adoption occurred in the 80-ies of XX century. What is a hedge Fund learned of ordinary citizens.
US Policy in this matter is that the ability to invest the power is not everything. This can make investors managing assets over hundreds of millions of dollars.
One of the factors of popularity that the competent strategy of development allows you to be in profit not only when the market is rising but when it falls.
Soros, for example, popularized the hedge funds. After all the activities of his company "quantum" has brought huge profits a billion dollars, pound sterling collapses.
In our country officially allowed hedge funds only in 2008. It's been almost 10 years and now there are only 27 – is a small number.
At the heart of the henge funds a few simple principles:
This type of activity does not restrict its work to any part of, its assets are formed from the entire spectrum of instruments of stock exchanges and of Finance. Thanks to this accessibility, the investor is not dependent on the market. Here the rule is classic funds doesn't work: i.e. if there is a falling market, the shares may not be impaired.
Recommended
Staff evaluation: system and methods
Personnel Assessment allows you to identify how competent the employees involved in the enterprise, and it is the performance of their work – the most significant factor affecting the efficiency of the company. To clarify the impact of performa...
How to start your own business: important aspects.
Many people, tired of working for someone else, are increasingly thinking about how to start your own business. Someone wants to open a salon, someone store, and someone enough and vegetable stalls. Before you throw in the pool with his head, it is i...
Business activities. its essence and basic functions
The Entrepreneurial activity of the citizen – is undertaken at your own risk and independent activity, which aims to systematically profit through the sale of works, goods, services, use of the property. The citizen engaged in such activities, ...
In this sense, the hedge funds enough tools to make money on declining prices. Most of the assets they had reinforced the derivatives.
Thus, hedging is a risk management system, where purchasing a single tool, adversely affecting the market, can affect other instrument for the purpose of benefits.
For Example, if you take a dollar loan, the consumer is solely beneficial to the strengthening of the ruble if its revenues are denominated. But if the dollar will go up for the same initial data, the borrower will be in loss. Large corporations, unlike ordinary consumers, can not tolerate such a situation and the course is hedging, for example, buying futures on currency manipulation at a reasonable price.
Here hedging acts as an insurance policy to minimize losses, but it cannot completely eliminate all risks.
The Beauty of hedge funds is that they are profitable in any market environment. The infamous Soros Foundation in the year earned approximately a billion dollars. During the emerging crisis, hedge funds were shooting the cream of the profit to 15 % for the year. Some received 500 %, and 1000 % over the ten year period.
All of these funds were guided by the principle of buying undervalued securities and selling overvalued.
For undervalued securities distinctive record low of cheapness, when it is considered that these assets have some potential. Thus, it is assumed that they will acquire their positions of growth. With overvalued, the opposite is true.
This strategy is primitive, since in reality such situations, great variety. It is characteristic that, for example, a large hedge Fund Extranet Investment is almost useless with their money. Often, these organizations use credit, borrow the valuable assets from brokers.
What is a hedge Fund, In terms of its structure? To create such a Fund, the management company draws the investors, brokers and banks. Employees of the company to operate the buying and selling of securities.
The Foundation starts with investor interest. Capital manages the Fund. Bank-Garant holds assets of investors in various terms. As a rule, large banks with good reputation.
The activities of hedge Fund monitoring by the administrator, it auditor, assessing the assets, keeping the books, preparing reports for investors.
The Primary broker responsible for the technical operation. Most importantly, it needs to have the capacity to carry out operations. Often as Prime brokers are large banks.
There are many classifications of hedge funds, for example, the IMF provides:
Russianthe legislation defines hedge funds as mutual. Investors must be investors of the highest calibre owning securities worth at least three million rubles. For the year, these investors must commit at least a dozen operations in the amount of 300 000 rubles.
Participation in the domestic hedge Fund is not easy. And investors have no trust to the Russian management.
For Example, you can try a hedge Fund Extranet, representing a group of companies from the British virgin Islands. This resource has extensive experience in the market. The stated purpose of the company – increase your capital.
Hedge Fund personal account which is available immediately after registration, has recently entered the CIS market. Prior to this, the professionalism of the organization praised American and European users.
Wishing to invest in domestic henge-Fund, to open accounts in foreign banks. The investor must have the amount of one million dollars.
There is an alternative solution. For example, with the help of local middlemen can purchase a share in the foreign Fund. However, this risky scheme is meaningless because of the low protection of shareholder and difficulties of monitoring organizations.
Article in other languages:
BE: https://tostpost.com/be/b-znes/34110-shto-takoe-hedzh-fond-ply-na-susvetnuyu-ekanom-ku.html
KK: https://tostpost.com/kk/biznes/34422-b-l-hedzh--ory-lemd-k-ekonomika-a-ser.html
TR: https://tostpost.com/tr/business/30845-nedir-hedge-fon-global-ekonomi-zerindeki-etkisini.html
UK: https://tostpost.com/uk/b-znes/34641-scho-take-hedzh-fond-vpliv-na-sv-tovu-ekonom-ku.html
ZH: https://tostpost.com/zh/business/1579-what-is-a-hedge-fund-the-impact-on-the-global-economy.html
Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."
Related News
Constituent documents of joint-stock companies. Registration of joint-stock companies
Joint stock company is one of the legal forms of companies. It is formed by centralization of financial resources (enterprises money capital) are different entities. This procedure is performed through a sale of shares. The purpos...
Gross and net profitability of the company
Return, in contrast to the absolute rate of profit, is a relative indicator of profitability of the enterprise. It reflects the state of the company in which the proceeds received from the sale of goods cover all of the costs of p...
"Lever-AV". The latest electronic warfare systems
Modern military equipment cannot be imagined without a huge number of electronic components. Not surprisingly, their damage entails the non-functional weapons. So the latest means of electronic warfare, such as “the Lever AB...
Orel horse breed: characteristics, photos and description
Orlov breed horses – the jewel in the crown of the Russian horse-breeding. Even the most distant from this man at least once in my life heard the expression “Orlovsky Trotter”. Fast and furious, proud and beautif...
Potassium salt fertilizers, given by the nature
the Potassium salt is the raw material for the manufacture of fertilizers. This uses natural materials: sylvinite, carnallite, kainit, scenic and several others. They are extracted from deposits in the form of layers or lenses of ...
Shopping malls of Krasnoyarsk: the description, photo and reviews
Shopping Mall – is not only familiar to us malls, buildings, which is a lot of different trading platforms. In international terminology, the shopping center can be called any group of architectural joint retail enterprises ...
Comments (0)
This article has no comment, be the first!