IronStats

Hedge Fund Strategies

On this page we’ll share some of the most popular hedge fund investment strategies.

Strategy #1: The Equity Long-Short Strategy

A short sale is basically an investing technique where an investor borrows stock he doesn’t own (usually from a prime broker), and selling it in anticipation that the price will fall. If the investor’s thesis is correct, then he is able to buy back the stock at a cheaper price and pocket the difference. The long-short strategy is effectively buying stocks cheap to sell high on one side, and selling stocks high in order to buy cheap on the other. [read more]

Strategy #2: Global Macro Strategy

Global macro funds are extremely flexible with regards to their investment strategy. The strategy allows funds to trade in a wide variety of markets – they are not restricted like traditional long only funds and can employ a significant amount of leverage within their trading strategy to boost returns. The Trading strategies are implemented across a broad spectrum of asset classes such as commodities, stocks, bonds, currencies, and depend largely on a Portfolio Manager’s forecasts for key macroeconomic indicators such as inflation, political stability, interest rate environment, and overall economic growth. [read more]