Lecture 12 Flashcards
1
Q
Mutual funds vs. Hedgefunds
A
Strategies: Standard market // Numerous different
Benchmark alpha // Absolute alpha
Defensive or medium // Aggressive (leverage, derivs)
Beat benchmark // High returns
Accessible for everybody // accredited investors
Highly regulated // less regulation
public disclosure // minimal disclosure
infinite investors // 100 or less sophisticated
Predictable and stable strats // very flexible, change style
Limited use of shorting, leverage, options // unconstrained
No investment lock up // investment lock up
fees: 0.5 - 1.5 // 2 and 20
2
Q
Hedgefund strategies
A
directional vs non-directional
3
Q
Regulation
A
UCITS Funds follow ESMA, are open ended and daily tradable.
Passporting: Sell at all types in all EU states
