Hedge fund risk and VAR uncertainty

rowe-jpg
On first encounter, the term ‘hedge fund’ seems counter-intuitive. Hedging, after all, is a method for reducing risk. Why then are hedge funds, with Long-Term Capital Management (LTCM) as exhibit one, such risky investment vehicles? The answer, of course, is that ‘hedge fund’ is something of a misnomer. These vehicles might better be called ‘convergence-arbitrage investment funds’.

Traditional pension and mutual funds sell shares to investors and distribute the proceeds among a variety of

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

If you already have an account, please sign in here.

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: