Hedge Fund Strategies：对冲基金策略.docVIP

Hedging Strategies By Michael White MGMT 6380 Thesis Statement: Hedging strategies can help make the lay investors portfolios profitable. Abstract: There are various types of hedging strategies that traders employ on a daily basis. However, the ordinary investor may be afraid to add such strategies into their portfolio. This study is to examine what strategies the lay investor may undertake within their portfolios, and hopefully become comfortable with some these strategies. Traders may use complicated strategies very frequently; but there are some hedging strategies that the lay investor can use to have a successful portfolio, such as creating option spreads combinations, following trends, and investing in hedge-like mutual funds. Investors have taken an interest of late in hedge fund strategies; but can hedging strategies be truly more profitable than other investment strategies. Hedge fund strategies are always changing; they can spread different types of risks among different portfolios. Hedge Funds are normally seen as mysterious, and an exciting prospect for many investors, for those who can afford it. It is exciting for many investors to want to generate dramatic gains that hedging strategies can provide. Although, the strategies that hedge funds implement can be quite risky; profits can soar to all time highs, or fall to all time lows. There are several examples of hedging; there are long hedges, short hedges, reverse trading, cross hedging, and the hedge ratio. For implementing a long hedge, an investor may buy a contract at a set price to be later sold at a possible higher price in order to make a profit. A short hedge is a hedge where the hedger will sell a contract, the hedger can avoid the risk of prices falling by setting the price and selling in the future; the investor can hopefully expect more gains than they originally anticipated. Although, in most cases of hedging products such as commodities- long and short strategies do not always match up so