Search for other papers by Ms. Laura E. Kodres in
Current site
Google Scholar
Abstract
Perhaps one reason why it is difficult to arrive at a definitive characterization of hedge funds is the wide variety of investment strategies they undertake. Hedge funds, as portrayed in most press reports, have been variously discussed as “gunslingers” and “swaggering buccaneers” who routinely test the resolve of authorities in various countries.1 However, in truth, the managers of hedge funds employ a vast array of investment strategies with the goal of producing profits for themselves and their investors. Their strategies include trades aimed at taking a view about the macroeconomic policies of selected countries as well as seemingly arcane movements in the pricing of the cash and futures relationship for the 30-year U.S. treasury bond: hedge funds operate both as speculators as well as hedgers. Since hedge fund investment strategies are only limited by the constraints imposed in their own prospectuses, it should not be surprising that their strategies cover a myriad of markets and instruments.
International Monetary Fund Copyright © 2010-2025. All Rights Reserved.