Hedge Fund Management Glossary

Important definitions and terminologies used in Hedge Fund Management

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A

Absolute return in Hedge Fund

Activist investor in Hedge Fund

Alpha in Hedge Fund

Alpha generation in Hedge Fund

Alternative beta in Hedge Fund

Alternative data in Hedge Fund

Alternative investment in Hedge Fund

Arbitrage in Hedge Fund

Arbitrage Funds in Hedge Fund

Assets under management (AUM) in Hedge Fund

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B

Bell Curve of Returns in Hedge Fund

Beta in Hedge Fund

Black-Scholes model in Hedge Fund

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C

Capital raising in Hedge Fund

Capital structure arbitrage in Hedge Fund

Carry strategy in Hedge Fund

Carry trade in Hedge Fund

Clawback provision in Hedge Fund

Cloning in Hedge Fund

Co-investment in Hedge Fund

Collateralized debt obligation (CDO) in Hedge Fund

Commodity pool operator (CPO) in Hedge Fund

Commodity trading advisor (CTA) in Hedge Fund

Convertible arbitrage in Hedge Fund

Convexity in Hedge Fund

Counterparty risk in Hedge Fund

Counter-trend trading in Hedge Fund

Credit default swap (CDS) in Hedge Fund

Credit risk in Hedge Fund

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D

Dark pool in Hedge Fund

Day trading in Hedge Fund

Default risk in Hedge Fund

Delta in Hedge Fund

Derivative in Hedge Fund

Directional Funds in Hedge Fund

Discretionary trading in Hedge Fund

Distressed debt in Hedge Fund

Distressed securities in Hedge Fund

Diversification in Hedge Fund

Drawdown in Hedge Fund

Due diligence in Hedge Fund

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E

Emerging markets in Hedge Fund

Equity Funds in Hedge Fund

Equity long-short in Hedge Fund

Equity market neutral in Hedge Fund

Event risk in Hedge Fund

Event-driven in Hedge Fund

Exchange-traded fund (ETF) in Hedge Fund

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F

Factor investing in Hedge Fund

Family office in Hedge Fund

Fees in Hedge Fund

Financial leverage in Hedge Fund

Fixed income in Hedge Fund

Fixed-income arbitrage in Hedge Fund

Fund administrator in Hedge Fund

Fund of funds in Hedge Fund

Fundamental analysis in Hedge Fund

Funds-of-Funds in Hedge Fund

Futures contract in Hedge Fund

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G

Gamma in Hedge Fund

Global custody in Hedge Fund

Global macro in Hedge Fund

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H

Hedge in Hedge Fund

Hedge fund in Hedge Fund

Hedge fund index in Hedge Fund

Hedge fund manager in Hedge Fund

Hedge fund replication in Hedge Fund

Hedging in Hedge Fund

High-frequency trading in Hedge Fund

High-net-worth individual (HNWI) in Hedge Fund

High-water mark in Hedge Fund

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I

Illiquid assets in Hedge Fund

Incentive fee in Hedge Fund

Index in Hedge Fund

Inflation risk in Hedge Fund

Insider trading in Hedge Fund

Institutional investor in Hedge Fund

Interest rate risk in Hedge Fund

Investment strategy in Hedge Fund

Investor Return in Hedge Fund

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L

Leverage in Hedge Fund

Liquidity provider in Hedge Fund

Liquidity risk in Hedge Fund

Lock-up period in Hedge Fund

Long/short equity in Hedge Fund

Long-only in Hedge Fund

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M

Managed account in Hedge Fund

Managed futures in Hedge Fund

Management fee in Hedge Fund

Margin in Hedge Fund

Market maker in Hedge Fund

Market neutral in Hedge Fund

Market risk in Hedge Fund

Market timing in Hedge Fund

Merger arbitrage in Hedge Fund

Multi-asset class in Hedge Fund

Multi-strategy in Hedge Fund

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N

Naked short selling in Hedge Fund

Negative interest rates in Hedge Fund

Net asset value (NAV) in Hedge Fund

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O

Open-ended fund in Hedge Fund

Operational due diligence in Hedge Fund

Options contract in Hedge Fund

Over-the-counter (OTC) in Hedge Fund

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P

Participants in Hedge Fund

Performance attribution in Hedge Fund

Performance fee in Hedge Fund

Permanent/Fixed Capital in Hedge Fund

Player in Hedge Fund

Portfolio manager in Hedge Fund

Primary Brokers in Hedge Fund

Prime broker in Hedge Fund

Prime brokerage in Hedge Fund

Private equity in Hedge Fund

Private placement memorandum (PPM) in Hedge Fund

Proprietary trading in Hedge Fund

Put option in Hedge Fund

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Q

Quantitative analysis in Hedge Fund

Quantitative easing in Hedge Fund

Quantitative easing 2 (QE2) in Hedge Fund

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R

Real assets in Hedge Fund

Real estate investment trust (REIT) in Hedge Fund

Redemption in Hedge Fund

Redemption fee in Hedge Fund

Regulatory compliance in Hedge Fund

Relative return in Hedge Fund

Relative value in Hedge Fund

Risk management in Hedge Fund

Risk-adjusted return in Hedge Fund

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S

Scalping in Hedge Fund

Sharpe ratio in Hedge Fund

Short interest in Hedge Fund

Short selling in Hedge Fund

Short squeeze in Hedge Fund

Side pocket in Hedge Fund

Single-manager hedge fund in Hedge Fund

Single-stock futures in Hedge Fund

Special situations in Hedge Fund

Speculative risk in Hedge Fund

Spinning in Hedge Fund

Statistical arbitrage in Hedge Fund

Stock loan in Hedge Fund

Structured finance in Hedge Fund

Supervision Approach in Hedge Fund

Systematic trading in Hedge Fund

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T

Tactical asset allocation in Hedge Fund

Tail risk in Hedge Fund

Tail risk hedging in Hedge Fund

Technical analysis in Hedge Fund

Total return swap (TRS) in Hedge Fund

Tracking error in Hedge Fund

Trading desk in Hedge Fund

Treasury inflation-protected securities (TIPS) in Hedge Fund

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U

Underlying asset in Hedge Fund

Unique risk in Hedge Fund

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V

Value at risk (VaR) in Hedge Fund

Value investing in Hedge Fund

Value trap in Hedge Fund

Venture capital in Hedge Fund

Volatility arbitrage in Hedge Fund

Volatility smile in Hedge Fund

Vulture investor in Hedge Fund

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W

War chest in Hedge Fund

Wealth management in Hedge Fund

White knight in Hedge Fund

White label fund in Hedge Fund

World hedge fund index in Hedge Fund

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