Funds offer investment strategies for wide range of market conditions

Access to Islamic Hedge Funds: November 2008

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Alfred Jones is credited with the creation of the first hedge fund in 1949. To neutralise the effect of overall market movement, he balanced his portfolio by buying stocks he expected to rise and selling short the ones he thought would drop in price. The effect was to ‘hedge’ part of the risk due to overall market movements.

The industry has grown rapidly with an estimated $3 trillion in assets under management. Hedge funds now account for close to half the trading on the New York and London stoc