What are Hedge fund Strategies?
Hedge fund strategies involve varied techniques to hedge against investment risks and other things. As a result these funds are not considered to be homogeneous.
In most cases hedge funds or investors try to avoid investment risks and focus on profits. In fact, the risks are so much higher because of more competition. Strategies used include global macro, arbitrage, convertible arbitrage, fixed income arbitrage, risk arbitrage, statistical arbitrage, derivative arbitrage, short or long term equity, short bias, equity market neutral, event driving, distressed securities, regulation D, merger arbitrage, emerging markets, fund of hedge funds and/or the F3/F cube approaches. However, these can give some protection, they are still risky.