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Hedge Fund Strategies

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Long/Short Equity

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This strategy involves taking long positions in undervalued stocks and short positions in overvalued stocks.

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Market Neutral

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Aims to negate the influence of market movements on portfolio performance by balancing long and short positions so that the beta of the long positions is offset by the short.

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Global Macro

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Focuses on investing in global markets, including stocks, bonds, currencies, and commodities, based on economic and political views.

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Event-Driven

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Strategy seeking to exploit pricing inefficiencies caused by events such as mergers, acquisitions, bankruptcy, or another significant corporate event.

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Quantitative

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Employs mathematical and statistical methods to identify trading opportunities, often executing orders through automated systems.

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Emerging Markets

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Strategy that focuses on investing in the securities of countries with emerging economies, often seeking high rates of growth.

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Distressed Securities

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Involves purchasing securities of companies that are in financial distress or bankruptcy.

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Merger Arbitrage

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Takes advantage of price discrepancies that occur before and after a merger or acquisition announcement.

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Convertible Arbitrage

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Strategy of taking a long position in a company's convertible bonds or preferred shares and a short position in its common stock.

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Fixed-Income Arbitrage

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Aims to exploit pricing differences in the fixed-income securities of the same company or similar companies.

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Momentum

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Invests in securities that have had high returns over the past 3 to 12 months, and sells those that have had poor returns over the same period.

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Value

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Involves picking stocks that appear to be trading for less than their intrinsic or book value.

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Growth

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Focuses on investing in companies that are expected to grow at an above-average rate compared to their industry or the overall market.

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Activist

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Invests in companies with the aim of obtaining significant influence to enact changes that increase shareholder value.

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Managed Futures

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Uses derivatives like futures and options to speculate on the future price of assets, often using algorithms and trend-following strategies.

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Fund of Funds

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Invests in a variety of hedge funds to provide broad exposure to different strategies and managers.

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Risk Arbitrage

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A form of event-driven investment designed to profit from merger and acquisition situations, involving simultaneous purchase and sale of the stocks of two merging companies.

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Short Only

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A predominantly bearish investment strategy that involves only short-selling stocks that are expected to decrease in value.

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Currency

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Involves trading strategies that capitalize on perceived pricing inefficiencies in the currency markets, often involving leverage.

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Volatility

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Seeks to profit from volatility in market prices, often by trading options or volatility indices.

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Credit

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Invests in fixed-income securities and seeks to take advantage of differences in credit spreads between various debt instruments.

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Relative Value

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Aims to exploit price differences between related financial instruments, such as between stocks and options, or between bonds of differing credit quality.

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Dedicated Short Bias

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This strategy is characterized by maintaining net short exposure to the market through short-selling equities.

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Regulatory Catalyst

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Seeks to profit from regulatory events including approvals of drugs, changes in regulation, or antitrust suits which affect the prices of securities.

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Inflation Protection

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Investing in assets that are expected to maintain or increase their value over time despite rising inflation.

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Sector Specific

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Focuses on investing within a specific sector of the economy, such as technology, healthcare, or energy.

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PIPE (Private Investment in Public Equity)

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Involves purchasing private equity in a public company, usually at a discount to the current market valuation, in order to support the company with capital.

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Capital Structure Arbitrage

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Seeks to profit from mispriced securities within a company's capital structure, such as between a company's debt and equity.

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