hi, i jz need to know some brief, in lay-man terms explanation of what hedge funds are...

i'm just an engineering student forced to learn a little bit about world macro-economics and jz running through some articles that got mention about this....

thanks

Hedge fund is only available to those high-net worth customers, to make them even richer as far as i'm concerned

A hedge fund is a fund that can take both long and short positions, use arbitrage, buy and sell undervalued securities, trade options or bonds, and invest in almost any opportunity in any market where it foresees impressive gains at reduced risk. Hedge fund strategies vary enormously -- many hedge against downturns in the markets -- especially important today with volatility and anticipation of corrections in overheated stock markets. The primary aim of most hedge funds is to reduce volatility and risk while attempting to preserve capital and deliver positive returns under all market conditions

Absolute returns regardless the market movement, unlike unit trust that benchmarked themselves to the index.

*sweet & easy*

is this available to malaysian investors?

From wikipedia
http://en.wikipedia.org/wiki/Hedge_fund

A hedge fund is an investment fund open to a limited range of investors that undertakes a wider range of investment and trading activities than long-only investment funds, and that, in general, pays a performance fee to its investment manager. Every hedge fund has its own investment strategy that determines the type of investments and the methods of investment it undertakes. Hedge funds, as a class, invest in a broad range of investments including shares, debt and commodities.

As long as you are rich enough i.e. a high net worth individual, then you can have access to hedge fund. Otherwise, it is off limits for normal people like us.

hedge funds = foreign investors in malaysia

they all lost confidence in bursa liao!!

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Added on December 8, 2009, 9:57 pmhedge funds = 对冲基金

like gorge soros in 1997 asia financial crisis, he is the leader of a large hedge funds.

This post has been edited by pete999: Dec 8 2009, 09:57 PM

Not all the foreign investor in Malaysia are hedge funds. There may be foreign mutual funds, pension funds that invest in Malaysia. Foreign investor come and go according to the popular theme of that day. Now, the popular theme is BRIC. Last time, it used to be LATAM etc... Foreign investor does not invest in Malaysia in Malaysia does not means that they have lose confidence. Just that our exchange is not part of that theme. That's part of the life of being an Emerging Market exchange. The hot money come and go.