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Investment of capital can be exciting and unnerving at the same time for a lot of different reasons. You could be someone that is a seasoned investment player or someone that may have started their investment journey, no matter who you are, you can always dabble into hedge fund investment and distribute your investment through the various strategies that a lot of investment experts like Kabiller, James Velissaris or Ray Dalio swear by.
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Investment of capital can be exciting and unnerving at the same time for a lot of different reasons. You could be someone that is a seasoned investment player or someone that may have started their investment journey, no matter who you are, you can always dabble into hedge fund investment and distribute your investment through the various strategies that a lot of investment experts like Kabiller, James Velissaris or Ray Dalio swear by. Hedge fund is a fund that is pooled by investors for it to be invested into assets that are more liquid. It is believed that investing in hedge funds can lead to the use of a diverse range of investment techniques. Here are a couple of investment strategies that are used in hedge funds:
Long/Short Equity: This is an investment strategy in which future values of trades are speculated; the trades that are expected to increase in value are bought and the ones that are expected to decrease in value known as short equities are sold. Experts like Velissaris believe that this is a strategy that requires in-depth analysis of equities to be able to minimize risk. Relative Value Strategy: As the name suggests, the investment strategy works by comparing values of related assets to trade in an asset and earn profits. This strategy is also known as the arbitrage strategy that work by leveraging the pricing of similar or related assets in speculating the value of investment assets.
Event Driven Strategy: This is a strategy for investment that directly relates to business events. Anything right from an earning call to the introduction of a spin off can be leveraged for speculation about the business’ stock price as per industry veterans like Siegel and Velissaris. Global Macro: This is a wide range investment strategy that is leveraged by hedge funds based on world events. Anything that is likely to affect national economies, cross-border relations or global history in any way, can be a factor for investors to speculate either the rise or fall of asset value. Industry stalwarts like James Velissaris assert that a detailed analysis of historical references can offer a better analysis report in the course of investment and in minimizing risk.
While there are a lot of different strategies that are applied by hedge funds, it is important to remember that no strategy provides the guarantee of assured returns. The risks that are associated with investments are also never completely eliminated, which is why it is important to ensure that you invest with hedge funds that have a reliable track record. A smart move towards safeguarding your investment is to invest after studying the performance of the hedge fund that you wish to invest with.
Even though there is no certainty of return in the process of investment, you can choose to channel your capital in a way that the investment is well-thought and effectively analyzed & planned by those that know how investments work. SOURCE CREDIT:https://jamesvelissaris.blogspot.com/2021/08/all-you-need-to-know-about-hedge-fund.html
