1 thought on “What exactly is hedge fund? What is alpha income?”
Nettie
What is hedge fund In hedge funds, also known as insurance shelter or arbitrage funds, refers to financial derivatives (Financial) and financial organizations (Financial Option) and financial organizations. After combining, a financial fund with high risk speculation and profitability. It is a form of investment funds and is an Exempt Market product. It means "the fund that has been underwritten". The hedging fund is called the fund. It is essentially different from the fact that it is safely different from the security fund's security, expected expected income, and value -added investment philosophy. The hedge fund uses various transaction methods (such as short selling, leverage operations, program transactions, swap transactions, arbitrage transactions, derivative varieties, etc.) to earn huge profits for hedging, replacement, set, and set period. These concepts have exceeded the scope of traditional prevention and expected expected income operation. In addition, the legal threshold for initiating and establishing hedge funds is much lower than that of mutual benefit funds, which further increases the risks. In order to protect investors, North American securities management agencies include it in the ranks of high -risk investment varieties, strictly restricting ordinary investors' intervention. Essence In addition: For example, in a basic hedge operation. After purchasing a stock, the fund manager purchases a certain price and timeliness of this stock at the same time. The effectiveness of declining options is that when the stock price fell below the price of options, the seller's option holders could sell the stocks held in their hands at a option -limited price, so as to hedge the risk of stock decline. For example, in another type of hedge operation, the fund manager first selects an industry with a bullish market to buy a few high -quality shares in the industry. At the same time, it sells at a certain ratio. Several inferior stocks. As a result of this combination, if the industry is expected to perform well, the increase in high -quality stocks will exceed the inferior stocks of other industries. The expected annualized expected income of buying high -quality stocks will be greater than the loss of short -selling and inferior stocks. In this industry, stocks do not rise and fall, so the decline in inferior stocks must be greater than high -quality stocks, and the profit obtained by selling empty markets must be higher than the loss caused by buying high -quality stocks. Because of such operational means, early hedging funds can be said to be a fund management form based on a conservative investment strategy based on hedging. After decades of evolution, hedge funds have lost its initial risk hedge connotation, and the title of Hedge Fund has a false name. Hedge funds have become synonymous with a new investment model, that is, based on investment theories and extremely complex financial market operation skills, make full use of the leverage effectiveness of various financial derivative products, bear high risk, and pursue high expected annualized expected income Investment model. What is the expected annualized expected income of Alpha We know that the expected annualized expected income of the investment portfolio can be divided into two parts: one is the expected annualized expected income from the market, and the other is the market that transcends the market to the market. The expected expected expected income, that is, Alpha expected to be expected to return. The investment portfolio of stock funds, as a stock, also has systemic risks and non -system risks. Beta describes systemic risks, reflects the sensitivity of the fund's fluctuations in the market, and Alpha reflects the fund's ability to obtain excessive expected expected benefits. The choice of Beta is mainly based on different market conditions. In the market rising market, investors can get the expected annualized expected income brought about by the high market rising funds; At the same time, a fund with a lower Beta value can have a good defense effect. For investors with many funds, regardless of the market is good or bad, the bigger Alpha is better, and investors hope to obtain a positive excessive expected annualized expected income. For the investment of stock funds, investors with the ability to choose from superb funds in the market are difficult to offset losses caused by market decline. In terms of investors, unilaterally holding funds are difficult to avoid systemic risks, and Alpha's hedging strategy provides the possibility for investors to obtain absolute expected annualized expected income. The basic idea of Alpha strategy is to hedge all systemic risks and retain excessive expected annualized expected income. The only task of investors who execute the Alpha strategy is to choose a fund with higher Alpha, and no longer need to worry about the market's behavior. At this time, the systemic risks have completely achieved hedging. Of course, hedging has two sides. On the one hand, if the overall market conditions fall in the future, investors can avoid the risk of market decline; on the other hand, if the overall market conditions will rise in the future, investors will not get the market The expected annualized expected income of the rise. The following briefly introduces the method of Alpha's hedging strategy. According to capital asset pricing models, fund risks are divided into systemic risks and non -system risks. The Alpha strategy is short while holding a fund while holding a fund, which is usually the stock index futures to realize the Beta value of the combination to 0, thereby achieving the combination of the immunity of the overall situation of the market. . For example, for a certain stock fund A, the Shanghai and Shenzhen 300 represents the market index, the expected annualized expected return on return on week, and the Beta value obtained based on the capital asset pricing model is 1.1, and the Alpha value is 0.1 %. Assuming that the current net value of the fund A held by investors is 100 yuan. In order to apply Alpha strategy and eliminate systemic risks, the position of 300 Shanghai and Shenzhen index futures is 110 yuan (1.1 × 100 = 110). The asset portfolio constituted in this way realize the immunity to the overall trend of the market. If the Shanghai and Shenzhen 300 decreased 5%in the next week, according to the price of capital assets, in the statistical sense, the fund fell by 5.4%(-5.5% 0.1%= -5.4%), of which 5.5%(1.1 × 5%= 5.5%) The decline in the market is caused by the decline in the market. The rise of 0.1%is contributed by Alpha. The loss on the holding fund A is 5.4 yuan (100 × 5.4%= 5.4). On the contrary 5.5 yuan (110 × 5%= 5.5), the expected annualized expected income of the overall combination was 0.1 yuan (-5.4 5.5 = 0.1). In the same way, if the Shanghai and Shenzhen 300 increased by 5%in the next week, according to the capital pricing model, the statistical sense, the fund increased by 5.6%(5.5% 0.1%= 5.6%), of which 5.5%(1.1 × 5%= 5.5%= 5.5% ) The rise of the market is caused by the market rising. The rise of 0.1%is contributed by Alpha. The expected annualized expected income of the Holding Fund A is 5.6 yuan (100 × 5.6%= 5.6). It was 5.5 yuan (110 × 5%= 5.5), and the expected expected expected income of the overall combination was 0.1 yuan (5.6-5.5 = 0.1). Alpha expects to be expected to hedge strategies . It is accurate and expected expected expected income nature. Small sexuality and stable victory can help investors to stabilize the expected expected income; second, through the hedging of stock index futures, "less loss" can be effectively transformed into "expected expected income".以2011年A股2037只股票为分析对象：当时市场上有175只股票，也就是只有9%的股票获得了正预期年化预期收益，超过32%的股票超越沪深300，因此，我们可以It is found that the hedging of the stock index futures can greatly increase the probability of profitability; the third is that investors can focus more on "stock selection": Through research, most of the performance contributions of the common fund are from asset allocation, and hedge products will highlight the selection of managers' selection The stock advantage, whether it is fundamental or quantitative investment, is conducive to professional division of labor; fourth, the operation of Alpha's hedging strategy can obtain a certain risk -free expected expected expected income: the expected expected income of dividend expectations and expected annualized expected expected income, These expected annualized expected returns have been expected to be expected to reach more than 5%.
What is hedge fund
In hedge funds, also known as insurance shelter or arbitrage funds, refers to financial derivatives (Financial) and financial organizations (Financial Option) and financial organizations. After combining, a financial fund with high risk speculation and profitability. It is a form of investment funds and is an Exempt Market product. It means "the fund that has been underwritten". The hedging fund is called the fund. It is essentially different from the fact that it is safely different from the security fund's security, expected expected income, and value -added investment philosophy.
The hedge fund uses various transaction methods (such as short selling, leverage operations, program transactions, swap transactions, arbitrage transactions, derivative varieties, etc.) to earn huge profits for hedging, replacement, set, and set period. These concepts have exceeded the scope of traditional prevention and expected expected income operation. In addition, the legal threshold for initiating and establishing hedge funds is much lower than that of mutual benefit funds, which further increases the risks. In order to protect investors, North American securities management agencies include it in the ranks of high -risk investment varieties, strictly restricting ordinary investors' intervention. Essence In addition: For example, in a basic hedge operation. After purchasing a stock, the fund manager purchases a certain price and timeliness of this stock at the same time. The effectiveness of declining options is that when the stock price fell below the price of options, the seller's option holders could sell the stocks held in their hands at a option -limited price, so as to hedge the risk of stock decline.
For example, in another type of hedge operation, the fund manager first selects an industry with a bullish market to buy a few high -quality shares in the industry. At the same time, it sells at a certain ratio. Several inferior stocks. As a result of this combination, if the industry is expected to perform well, the increase in high -quality stocks will exceed the inferior stocks of other industries. The expected annualized expected income of buying high -quality stocks will be greater than the loss of short -selling and inferior stocks. In this industry, stocks do not rise and fall, so the decline in inferior stocks must be greater than high -quality stocks, and the profit obtained by selling empty markets must be higher than the loss caused by buying high -quality stocks. Because of such operational means, early hedging funds can be said to be a fund management form based on a conservative investment strategy based on hedging.
After decades of evolution, hedge funds have lost its initial risk hedge connotation, and the title of Hedge Fund has a false name. Hedge funds have become synonymous with a new investment model, that is, based on investment theories and extremely complex financial market operation skills, make full use of the leverage effectiveness of various financial derivative products, bear high risk, and pursue high expected annualized expected income Investment model.
What is the expected annualized expected income of Alpha
We know that the expected annualized expected income of the investment portfolio can be divided into two parts: one is the expected annualized expected income from the market, and the other is the market that transcends the market to the market. The expected expected expected income, that is, Alpha expected to be expected to return.
The investment portfolio of stock funds, as a stock, also has systemic risks and non -system risks. Beta describes systemic risks, reflects the sensitivity of the fund's fluctuations in the market, and Alpha reflects the fund's ability to obtain excessive expected expected benefits. The choice of Beta is mainly based on different market conditions. In the market rising market, investors can get the expected annualized expected income brought about by the high market rising funds; At the same time, a fund with a lower Beta value can have a good defense effect. For investors with many funds, regardless of the market is good or bad, the bigger Alpha is better, and investors hope to obtain a positive excessive expected annualized expected income.
For the investment of stock funds, investors with the ability to choose from superb funds in the market are difficult to offset losses caused by market decline. In terms of investors, unilaterally holding funds are difficult to avoid systemic risks, and Alpha's hedging strategy provides the possibility for investors to obtain absolute expected annualized expected income.
The basic idea of Alpha strategy is to hedge all systemic risks and retain excessive expected annualized expected income. The only task of investors who execute the Alpha strategy is to choose a fund with higher Alpha, and no longer need to worry about the market's behavior. At this time, the systemic risks have completely achieved hedging. Of course, hedging has two sides. On the one hand, if the overall market conditions fall in the future, investors can avoid the risk of market decline; on the other hand, if the overall market conditions will rise in the future, investors will not get the market The expected annualized expected income of the rise.
The following briefly introduces the method of Alpha's hedging strategy. According to capital asset pricing models, fund risks are divided into systemic risks and non -system risks. The Alpha strategy is short while holding a fund while holding a fund, which is usually the stock index futures to realize the Beta value of the combination to 0, thereby achieving the combination of the immunity of the overall situation of the market.
. For example, for a certain stock fund A, the Shanghai and Shenzhen 300 represents the market index, the expected annualized expected return on return on week, and the Beta value obtained based on the capital asset pricing model is 1.1, and the Alpha value is 0.1 %. Assuming that the current net value of the fund A held by investors is 100 yuan. In order to apply Alpha strategy and eliminate systemic risks, the position of 300 Shanghai and Shenzhen index futures is 110 yuan (1.1 × 100 = 110). The asset portfolio constituted in this way realize the immunity to the overall trend of the market. If the Shanghai and Shenzhen 300 decreased 5%in the next week, according to the price of capital assets, in the statistical sense, the fund fell by 5.4%(-5.5% 0.1%= -5.4%), of which 5.5%(1.1 × 5%= 5.5%) The decline in the market is caused by the decline in the market. The rise of 0.1%is contributed by Alpha. The loss on the holding fund A is 5.4 yuan (100 × 5.4%= 5.4). On the contrary 5.5 yuan (110 × 5%= 5.5), the expected annualized expected income of the overall combination was 0.1 yuan (-5.4 5.5 = 0.1). In the same way, if the Shanghai and Shenzhen 300 increased by 5%in the next week, according to the capital pricing model, the statistical sense, the fund increased by 5.6%(5.5% 0.1%= 5.6%), of which 5.5%(1.1 × 5%= 5.5%= 5.5% ) The rise of the market is caused by the market rising. The rise of 0.1%is contributed by Alpha. The expected annualized expected income of the Holding Fund A is 5.6 yuan (100 × 5.6%= 5.6). It was 5.5 yuan (110 × 5%= 5.5), and the expected expected expected income of the overall combination was 0.1 yuan (5.6-5.5 = 0.1).
Alpha expects to be expected to hedge strategies
. It is accurate and expected expected expected income nature. Small sexuality and stable victory can help investors to stabilize the expected expected income; second, through the hedging of stock index futures, "less loss" can be effectively transformed into "expected expected income".以2011年A股2037只股票为分析对象：当时市场上有175只股票，也就是只有9%的股票获得了正预期年化预期收益，超过32%的股票超越沪深300，因此，我们可以It is found that the hedging of the stock index futures can greatly increase the probability of profitability; the third is that investors can focus more on "stock selection": Through research, most of the performance contributions of the common fund are from asset allocation, and hedge products will highlight the selection of managers' selection The stock advantage, whether it is fundamental or quantitative investment, is conducive to professional division of labor; fourth, the operation of Alpha's hedging strategy can obtain a certain risk -free expected expected expected income: the expected expected income of dividend expectations and expected annualized expected expected income, These expected annualized expected returns have been expected to be expected to reach more than 5%.