Types of Hedge Funds

NOTES
1. Data collected by Hedge Fund Research, Grosvnor Capital Management, and
Undiscovered Managers, LLC, as presented on the Undiscovered Managers web
site in Alternative Investments and the Semi-affluent Investor; Chapter 2: "Ab-
solute Return Strategies--Part 1," 2001, page 16.
2. The indexes published by the Center for International Securities and Derivatives
Markets (CISDM) include an equity market neutral long/short category.
3. The obvious complication is a bid to buy in cash. If the deal is completed, the
fund becomes outright short the acquirer. At least part of the profit in the deal
would depend on where the short hedge could be covered. Other combinations
include a combination of cash and securities (including common, preferred, and
debt) and multistep bids (where a bid is made for a controlling amount of stock
with the hope of buying back the minority positions more cheaply).
Types of Hedge Funds
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