What is a hedge fund?

A hedge fund is an alternative investment vehicle that employs numerous different strategies in order to achieve a positive return, called "alpha", for its investors. These kind of funds are actively managed and they usually make use of derivatives and high leverage with the goal of enhancing profits from trades. Hedge funds are generally only accessible … Continue reading What is a hedge fund?

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What is a short position?

A short position, usually simply called short, is an investment or speculative strategy where an investor sells shares of a borrowed stock in the market. The investor expects that the price of the stock to decrease over time, so that in the future he will be able to purchase the shares in the open market … Continue reading What is a short position?

Is Herbalife a fraud? Bill Ackman says it is a huge one

It was May 1st , 2012 when David Einhorn, a well-known hedge fund manager, founder and president of Greenlight Capital, asked accurate questions about Herbalife International's business and sales models during the first quarter's earnings call, setting off suspicions that he had a short position on the stock. In fact, in January 2013 Einhord revealed that … Continue reading Is Herbalife a fraud? Bill Ackman says it is a huge one