Hedge funds

7 videos
Hedge funds have absolutely nothing to do with shrubbery. Their name comes from the fact that early hedge funds (and some current ones) tried to "hedge" their exposure to the market (so they could, in theory, do well in an "up" or "down" market as long as they were good at picking the good companies). Today, hedge funds represent a huge class investment funds. They are far less regulated than, say, mutual funds. In exchange for this, they aren't allowed to market or take investments from "unsophisticated" investors. Some use their flexibility to mitigate risk, other use it to amplify it.

Hedge funds intro

VIDEO 3:32 minutes
Overview of how hedge funds are different than mutual funds

Hedge fund structure and fees

VIDEO 6:51 minutes
Understanding how hedge funds are structured and how the managers get paid

Are hedge funds bad?

VIDEO 7:50 minutes
Thinking about how hedge funds are different from other institutions

Hedge funds, venture capital, and private equity

VIDEO 2:54 minutes
Similarities in compensation structure for hedge funds, venture capital firms, and private equity investors

Hedge fund strategies: Long short 1

VIDEO 3:35 minutes
Setting up a simple long-short hedge (assuming the companies have similar beta or correlation with market)

Hedge fund strategies: Long short 2

VIDEO 4:31 minutes
Seeing how the long-short portfolio might do in different market conditions (assuming that the underlying thesis is right)

Hedge fund strategies: Merger arbitrage 1

VIDEO 5:01 minutes
Simple case of merger arbitrage when there is an all cash acquisition