The Analysis Of Hedge Fund And Its Investment Strategies

Hedge fund is a kind of super investment fund that seeks extra ? gains beyond the benchmark yield through basic long and short methods as well as actively utilizing various strategies across different financial products and regions.That said,high return doesn't necessarily translate into high risk.Over the past 20 years,the Sharpe Ratio of each main investment strategy of hedge fund was obviously ahead of that of S&P 500 Index globally.Hedge fund's investment strategies change in accordance with market situation in different cycles.However,event-driven strategy maintains a high return while medium level risk across several market cycles.Therefore,besides the definition and characters of hedge fund and its strategies,the paper will mainly analyze the characters and rationale of even-driven strategy,and demonstrate the investment logic and essence of its three sub-strategies through three real investment cases of an overseas hedge fund in Japan.Even-driven strategy focuses on the impact of specific events on a company.It can be independent of business cycles and realize stable returns.Even-driven strategy is a long-term strategy,but not short-term speculation.This paper is a deep-going analysis of hedge fund and its investment strategies,with the hope of help investors understand hedge fund thoroughly and gain positive return even under a sluggish or volatile market.