Beyond the Hedge Funds Definition at the Most Influential Alternative Investments Summit

Sept. 5, 2012 - PRLog -- (September 3, 2012, New York) A hedge fund takes both long and short positions, use arbitrage, buy and sell undervalued securities, trade options or bonds, and invest in almost any opportunity in any market where it foresees impressive gains at reduced risk. What would it take the adapt the definition to modern times? The keys will be presented at Hedge Funds Leaders Forum 2012, "Getting Ready to Manage $5 Trillion by 2016".

According to Magnum funds, it is important to understand the differences between the various hedge fund strategies because all hedge funds are not the same -- investment returns, volatility, and risk vary enormously among the different hedge fund strategies. Some strategies which are not correlated to equity markets are able to deliver consistent returns with extremely low risk of loss, while others may be as or more volatile than mutual funds. A successful fund of funds recognizes these differences and blends various strategies and asset classes together to create more stable long-term investment returns than any of the individual funds.

•   Hedge fund strategies vary enormously – many, but not all, hedge against market downturns – especially important today with volatility and anticipation of corrections in overheated stock markets.
•   The primary aim of most hedge funds is to reduce volatility and risk while attempting to preserve capital and deliver positive (absolute) returns under all market conditions.
•   The popular misconception is that all hedge funds are volatile -- that they all use global macro strategies and place large directional bets on stocks, currencies, bonds, commodities or gold, while using lots of leverage. In reality, less than 5% of hedge funds are global macro funds. Most hedge funds use derivatives only for hedging or don’t use derivatives at all, and many use no leverage.

Finally, the popular misconception is that all hedge funds are volatile -- that they all use global macro strategies and place large directional bets on stocks, currencies, bonds, commodities, and gold, while using lots of leverage. In reality, less than 5% of hedge funds are global macro funds. Most hedge funds use derivatives only for hedging or don't use derivatives at all, and many use no leverage.

Hedge Funds Leaders Forum 2012, "Getting Ready to Manage $5 Trillion by 2016" will provide attendees in New York, Chicago and London with the most up-to-date review of where this ever-changing industry stands and how regulatory and alpha expectation s will impact it. Recognized managers, investors, experts, regulators, and strategists will return to Hedge Funds Leaders Forum 2012 to provide the information practitioners are looking for in an open and unbiased environment, highly conducive to the most efficient and effective networking.

Hedge Funds Leaders Forum 2012 is produced by Golden Networking, the premier networking community for business executives, entrepreneurs and investors. Panelists, speakers and sponsors are invited to contact Golden Networking by sending an email to info@goldennetworking.net.