Hedge Funds as an Asset Class

Hedge Funds as an Asset Class

Hedge funds occupy an important place in the asset class spectrum. Unlike traditional asset classes they have the ability to add returns regardless of market direction. This video by Trevor Pugh is a brief introduction to hedge funds, wherein he highlights the important characteristics of hedge funds and also talks about some of its distinguishing features.
Overview

Hedge funds have unquestionably earned a place in the portfolios of more sophisticated investors. Their use of short selling and leverage helps them to stand out from more traditional investments. They are typically lower than equities, but with reduced volatility, making them a more appealing prospect in many models.

Key learning objectives:

  • What is short selling?

  • What are the two major characteristics of hedge funds?

  • What is Unencumbered cash?

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Summary
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Expert
Trevor Pugh

Trevor Pugh

Trevor has worked in finance since 1995. He started his career in investment banking after studying Law at Cambridge and taking a Masters Degree in Financial Services from University College Dublin. Trevor spent 18 years at Barclays investment bank where he became a Managing Director and head of Gilt trading. He currently works as Chief Operating Officer for a hedge fund.

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