Hedge funds strategy. This assignment will analyse two hedge fund strategies namely Opportunistic and Macro to make comparison with a benchmark buy-and-hold approach by making a comparison of the historic returns

The first 200 words of this essay...

I. INTRODUCTION

Although bestowing upon the investors profit, the growth of the stock market also brings a lot of risk. Therefore, the investors have to look for the methods to keep the risk at a minimum if they want to get the maximum benefit. From the 19th century, hedge funds have become more and more vital investment instruments on the financial markets. In recent years, as a lot of investors want to take part in the superior gains, the capital invested in such funds has grown fast. According to the estimation of TheCityUK, from 2000 to 2010 the global number of hedge funds grew from below 2000 to just under 9000, whereas at the same time the invested capital went up from 1000 bn assets to nearly 2200 bn asset (TheCityUK, 2010)1. Therefore, the hedge fund was established as one of the best way to help the investors protect their investment portfolio from the instability of markets. This assignment will analyse two hedge fund strategies namely Opportunistic and Macro to make comparison with a benchmark buy-and-hold approach by making a comparison of the historic returns and an overview of the nature of the risk of two strategies of the