Hedge Fund Introduction

12750 Words51 Pages
Hedge Funds Class
London February 2007

February 9, 2007

SECTION 1

Class Agenda

Agenda
♦ 9:00 - 10:30 ♦ 10:30 - 10:45 ♦ 10:45 - 12:15 ♦ 12:15 - 1:30 ♦ 1:30 - 2:15 ♦ 2:15 – 3:00 ♦ 3:00 - 3:15 ♦ 3:15 - 4:00 ♦ 4:00 - 4:45 ♦ 4:45 - 5:00 Hedge Fund Basics Coffee Break Basics Continued Lunch Continued Hedge Fund Services Coffee Break Fund of Funds Stuart Trueman Joe Troccolo Tamera Hodges Joe Troccolo Joe Troccolo

Hedge Funds & Corp Finance Laurent Charbonnier Wrap-up / Optional Exam Joe Troccolo

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Hedge Funds
Joe Troccolo, Managing Director Financial Markets Education
London, February 2007

Table of contents
SECTION 1 SECTION 2 SECTION 3 SECTION 4 SECTION 5 SECTION 6 SECTION 7 SECTION 8

Why Hedge Funds? Hedge
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Man Group Plc - Provider of Alternative Investments

Let’s see what they have on offer!

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No Hedge Funds for us please, we’re British!

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Meanwhile in Switzerland

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The Winds of Change

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The Hedge Fund “Value Proposition”
♦ Objectives:
– “high” returns, 10 - 15% annual – “low” volatility under 10% for some strategies – “low” correlation to traditional assets, 0 to 0.50 – “low” probability of significant losses

♦ How are these to be attained?
– Specific strategy – Skilfully and efficiently executed – Low, no, or tightly controlled exposure to the market – Trading methods or specialised instruments, such as derivatives, used to minimise or control risk – Identify and exploit market inefficiencies – Formulate and implement views on markets, economies, interest rates, exchange rates and volatilities

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Who are the managers?
♦ The quality of the manager is crucial for hedge funds. ♦ Hedge Fund
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