What exactly does a hedge fund do?
A hedge fund is an official partnership of investors who pool money together to be guided by professional management firms, not unlike a mutual fund. ... The investing purpose of hedge funds is to maximize returns, but managing firms use different strategies to achieve this goal.
So pretty much, to sum up HFs....
They round up a bunch of Ivy League betas, give them some money, and hope they can create some alpha
Yeah. The betas use delta strats to try to reduce gamma while engaging in high omega instruments tested in low sigma conditions to try and generate some sorry excuse of an alpha.
Yard work specializing in square shaped bushes
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