CURRENCY HEDGING AND BMW

Currency Hedging and BMW

Currency Hedging and BMW

Introduction

For alternative investments such as Hedge Funds increase should increase the con- conformity and knowledge of individuals regarding the use of these instruments investment portfolios. In this research will be focusing on hedge funds and their validity. How attractive are, and for which reasons recently they have been so attractive to many investors. The risks that we face in every day trading with hedge funds are generally complex, how this can be avoid in future investments, or if it is possible to control the risk that they facing shall be covered in the paper (Abolafia, 2008) (Abolafia, 2008).

Hedge funds as they torment reassuring figures policies, investors, and legislators. They secure those who decide to put their money into what they promise absolute returns uncorrelated to variations in traditional financial markets. But alarmed politicians in participate in a wild and unregulated capitalism, which could destabilize financial markets at some point raise the specter of crisis 1929 (Ackermann, 2007). Worse, the twenty-first century is that of decline of corporations and the advent of hedge funds. They use, for example, the technique of the sale of securities discovered. They can also bet on rising oil prices in buying futures. Some also believe that such speculation would increase barrel "15 to $ 20" 3. It is, therefore, understood the concerns of political and regulators. The public blames hedge funds from various ailments while that regulators and governments worried about their influence4, ranging, for example, to blame them to render inoperative the rescue (Agarwal, 2008). Business, however, strengthened by the recent law suave grade. Also, the proposed reform of the law he intends to bring these funds in the committee credit institutions, so they can continue to speculate (Aglietta, 2007a) (Abolafia, 2008).

When discussing the question of the location of hedge funds it should be distinguish the domiciliation of funds and location managers. More than half funds (nearly two-thirds of assets under management) are located offshore, particularly in the Cayman Islands, the Virgin Islands and Bermuda (Aglietta, 2007b). Excluding these, the bulk of the fund is domiciled in the United States with 48% of funds, and nearly 2 / 3 managed assets, far ahead of Europe (12% of funds and 24% of the amounts managed). If one is interested in the localization of management teams, the situation is different. The United States dominate the market with more than half of teams, far ahead of Europe (Aglietta, 2008a) (Ackermann, 2007).

The most important market for BMW is the U.S. In the first eight months increased the sales of the group there for almost ten percent to just over 185 000 vehicles. In Germany the number of sales dropped by almost ten percent to just over 149 000 deliveries.

This is of course the financial center of New York is most active in this field. According LSPID always end 2009, 80% from hedge funds in Europe is located in London, amounting to over $ 450 billion, five times more ...