BUSI 4502 Lecture Notes - Lecture 8: Commodity Futures Trading Commission, Long-Term Capital Management, Hedge Fund
30 Aug 2018
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Document Summary
Hedge funds are widely interested as it provides high returns when other asset classes experience low or negative return. Government regulators show interest in hedge funds after since the collapse of. Long term capital management (ltcm) in august 1998. Billions of dollars have been loss due to failed investment strategies and high leverage level. Previous studies have concluded that hedge funds provide higher transparency and enhance market efficiency. Market/dorgan bill were introduced to promote higher hedge fund disclosure. However, the diversity of hedge fund investment strategies and operation of hedge fund is not widely known to investors. Hence, the main aim of this article is to provide an overview of structure and operation of hedge industry, various investment strategies pursued by hedge funds and existing research on return and overall performance of hedge funds. The author categorizes hedge funds as legal entities and investment vehicles. In legal entities, there are less regulation as compared to other investment.
