Hedge funds

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I would like to take this chance for thanking my research facilitator, friends & family for support they provided & their belief in me as well as guidance they provided without which I would have never been able to do this research.

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I, (Your name), would like to declare that all contents included in this thesis/dissertation stand for my individual work without any aid, & this thesis/dissertation has not been submitted for any examination at academic as well as professional level previously. It is also representing my very own views & not essentially which are associated with university.

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ABSTRACT

The emergence of hedge funds in the financial market has become a landmark in the development of investment funds. Its management model and alternative independence from market developments they have made ??a success such that it exceeds a trillion dollars in assets under management. In the UK hedge accumulate funds over 25 years of tremendous importance in financial markets. The recent regulation in Spain of such funds has caused great expectation. However, the lacks of regulation to which they are subjected, the systematic risks associated with high minimum investments and greatly complicate the entry of investor's retail investment funds.  This risk includes counterparty risk, concentration risk, and the residual risk and it will result from the use of mitigation techniques and risk settlement or delivery. We will also briefly discuss of the history and some major incidents that occurred in the past and played critical role in the hedge funds world. Also we will be commenting on hedge fund futures and forecasts. Hedge funds have been classified as one of the most attractive investments in the market because of their ability or promise to give back absolute returns no matter of the market situation. Bear funds take this idea a stage further. They are designed to do well when equities are falling. They can do this by going short on specific shares, by shorting a stock market index or by selling stock index future contracts. Many investors have been promised better risk adjusted returns as they believe that they can give less volatility than investment in a broad equity index. However, the excessive financial volatility, both in the upswing of the economic cycle as the bassist, which differs from fundamental volatility, generates necessary necessarily, risks often disorderly correction and sudden, such as excess of indebtedness and restrictions on loans of the banking system and capital market (availability of liquidity), compromising the stability financial well-what is more important-the growth of the real economy the country, given the positive correlation between them. Hedge funds are less correlated to an equity index in market decline and more closely to correlated in market upswings. After a research we have made and looking into some main statistics and some hedge funds publications results, we have noticed that most of the times, hedge funds have failed to deliver absolute returns. Furthermore our results of my research indicate that hedge funds they are able to deliver better risk adjusted returns and manage to increase their correlation when market ...