Hedge Funds Research Coverage
We provide actionable research insights and technical advice on hedge funds. Our customised hedge fund research combines research services with alternative data and technology expertise. Our research coverage focuses on five regions, which includes; North America, South America, Asia Pacific and Europe. Our hedge fund research services provides in-depth knowledge on hedge fund firms, strategies, performance, investments, fund performance and AUM (Assets under Management).
Our comprehensive hedge fund research services covers six hedge fund investment portfolio strategies;
Equity Market Neutral
Equity market neutral funds take both long and short positions in stocks while seeking to reduce exposure to the systematic risk of the market (a beta of zero is desired). Equity market neutral hedge funds typically seek to exploit investment opportunities unique to a specific group of stocks, industry/sector while maintaining a neutral exposure to broad groups of stocks defined by sector, industry, market capitalization, country, or region. Equity market neutral hedge fund strategies includes the following sub strategies; statistical arbitrage, quantitative long/short, fundamental long/short and index arbitrage.
Equity Long/Short
Long/short equity hedge funds typically invest in both long and short sides of equity markets, generally focusing on diversifying or hedging across particular sectors, regions or market capitalizations. Managers typically have the flexibility to shift from value to growth; small to medium to large capitalization stocks; and net long to net short. Managers can also trade equity futures and options as well as equity related securities and debt or build portfolios that are more concentrated than traditional long-only equity funds.
Global Macro
Global macro hedge funds typically focus on identifying extreme price valuations and leverage is often applied on the anticipated price movements in equity, currency, interest rate and commodity markets. Managers typically employ a top-down global approach to concentrate on forecasting how political trends and global macroeconomic events affect the valuation of financial instruments. Profits can be made by correctly anticipating price movements in global markets and having the flexibility to use a broad investment mandate, with the ability to hold positions in practically any market with any instrument. These approaches may be systematic trend following models, or discretionary.
Managed Futures
Managed futures hedge funds (often referred to as CTAs or Commodity Trading Advisors) typically focus on investing in listed bond, equity, commodity futures and currency markets, globally. Managed futures fund managers tend to employ systematic trading programs that largely rely upon historical price data and market trends. A significant amount of leverage is often employed since the strategy involves the use of futures contracts. CTAs tend not to have a particular bias towards being net long or net short any particular market.
Dedicated Short Bias
A hedge fund strategy that maintains a net short exposure to the market through a combination of short and long positions. A dedicated short bias investment strategy attempts to capture profits when the market declines, by holding investments that are overall biased to the short side .A dedicated short bias is a directional trading strategy that entails taking a net short position in the market, meaning that a larger proportion of the portfolio is dedicated to short positions rather than to long positions. Being net short is the opposite of being net long; hedge funds that maintain a net long position are dedicated long bias funds. Dedicated short bias funds include instruments such as ProShares UltraShort 20+ Year Treasury, PowerShares DB US Dollar Index Bearish, and Short Dow30 ProShares.
Event Driven - Distressed
Event driven distressed hedge funds Index focus on distressed situations. These funds typically invest across the capital structure of companies subject to financial or operational distress or bankruptcy proceedings. Such securities often trade at discounts to intrinsic value due to difficulties in assessing their proper value, lack of research coverage, or an inability of traditional investors to continue holding them. This strategy is generally long-biased in nature, but managers may take outright long, hedged or outright short positions. Distressed managers typically attempt to profit on the issuer’s ability to improve its operation or the success of the bankruptcy process that ultimately leads to an exit strategy.