Survival of the fittest

The rapid growth of hedge funds as an alternative investment has created a financial climate wherein the search for new opportunities and strategies has become a matter of Darwin-like survival

The term hedge fund has become almost ubiquitous, but it remains open to multiple interpretations. It is used as a convenient generic label for an eclectic group of investment strategies that fall outside the traditional long-only, buy-and-hold equity and bond arenas. Hedge funds have experienced huge growth in recent years because of the versatility, flexibility and creativity that is embedded in the concept of alternative investment. Hedge fund strategies can be broadly classified into three main groups - equity hedge, arbitrage and trading. Those strategies can be further divided into ...