Pushing the boundaries

Professional Adviser
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When does a fund become a hedge fund? Hedge funds have existed for many years, but the definition is...

When does a fund become a hedge fund? Hedge funds have existed for many years, but the definition is still evolving and the boundaries between long-only and hedge funds are becoming increasingly blurred. Typically, hedge funds are thought of as esoteric and rather secretive investments used by the ultra-wealthy. They aim to deliver returns irrespective of stock market conditions through the use of sophisticated instruments such as derivatives. The introduction of wider investment powers under the Ucits III regime means long-only funds can use some of the methods and instruments that hav...

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