Hedge fund is a type of private and unregistered investment-pool that employs sophisticated hedging and arbitrage techniques in both domestic and international markets to generate high returns.
Traditionally Hedge funds have been limited to sophisticated, wealthy investors because they required a large initial investment.
Earlier most of the hedge funds strategies such as leverage, long, short and derivative positions were focused on corporate equity markets. But now hedge funds new focus areas are commodities and money markets.
Because hedge funds are unregistered, they can use securities and strategies that are either prohibited or restricted in registered funds. Continue reading “What is a Hedge fund”
Recalling the movie Other People’s Money . as I was more curious to know about the heated debate in US whether Private Equity to be termed as Hero or Villan. Those of you who has seen the Wall street series and remember Gordon Gekko,a character resembling popular culture for unrestrained greed (with the signature line, “Greed, for lack of a better word, is good”), often in fields outside corporate finance.
Let us try to understand Private Equity (PE) :
Private equity generally make investments in the operating companies through a variety of loosely affiliate investment strategies leveraged buyout, venture capital and growth capital.Typically, a private equity firm will raise pools of capital, or private equity funds that supply the equity contributions for these transactions. Continue reading “What is Private Equity?”