Hedge funds rely on several strategies to make money. Hedge Fund Research, Inc. (HFRI) divides them into four categories: Before exploring hedge fund strategies, first of all, what is a hedge fund? It is an investment vehicle by
Investment
Leveraged Buyout (LBO): How it Works, Funding Sources, Criteria for Target
What's it: A leveraged buyout (LBO) is an acquisition with debt relied upon to finance the purchase. This strategy is usually adopted by private equity firms. They buy companies hoping to profit without relying too much on internal capital.
Private Equity: Examples, Strategies, Targets, Its Ways To Make Money
What's it: Private equity is an investment vehicle focused on buying shares of prospective private companies to gain control over management and other operational changes to increase profitability. Thus, the target company can be sold profitably
Hedge Funds: Examples And What Do They Do?
What's is: Hedge funds are pooled investment funds by private investors, established in limited partnerships, and managed by professional fund managers using various complex strategies to generate above-average returns on investment. They use
What are the Types of Projects in Capital Budgeting?
There are various projects in capital budgeting. Unlike small projects within a division, capital projects are long-term. They also often require expensive investments and costs. In addition, they can significantly impact future business
The Pros and Cons of Alternative Investment You Need To Know
Alternative investments complement our portfolio, in addition to conventional investments such as stocks and bonds. However, alternative investments have pros and cons, just like traditional investments. For example,
Institutional Investors in Financial Markets: Who Are They?
Who're they: Institutional investors are organizations or companies that put money into making a profit. There are various institutional investors in financial markets. Examples include banks, insurance companies, pension funds, foundations,
What is the Capital Budgeting Process?
In simple terms, the capital budgeting process involves generating ideas, making proposals about several potential projects, and evaluating proposals. Then, we proceed to the capital budget planning stage for the selected project. Finally, we review
Alternative Investment: Characteristics, Types, Investors, Pros, and Cons
What's it: Alternative investment is an asset or instrument available as another possibility for us to generate returns and accumulate wealth. They do not fall into conventional investment categories such as equity, fixed income, and cash and