tailieunhanh - Hedge Funds

Some of those shareholders kept a close watch on the Fund’s holdings and noticed a large position in broker Lehman Brothers. These investors—sensing that the brokerage firm might be in trouble— decided to take their money out of the fund. To meet their redemption requests, the fund sold other securities—with the unfortunate result that the problematic Lehman securities became an ever-larger portion of the remaining assets. As a consequence, when Lehman declared bankruptcy on Septem- ber 15, 2008, the fund was hard hit, and the following day, the Primary Fund’s board dropped the NAV to $ per share. At the time, the fund needed permission from the SEC to suspend. | Investcorp Bank BSC Treasury Department Hedge Funds Done by Abdulla Eid Trainee aeid@ Supervised by Jonathan Minor Head of treasury principle jminor@ 1 Table of Content Introduction 3 Hedge Funds 4 Historical Notes 5 Hedge Funds Strategies 6 Regulator Environments 7 1- SeC 7 2- ECB 8 Where is Investcorp Bank BSC in the market 8 Latest news about the Hedge Fund market 9 Market Overview 11 1- Structure 11 2- Size 12 Key Players 14 Competitive Positioning 16 Risk of Hedge Funds 16 Top Companies in Hedge Funds 17 Key Opportunities 20 References and useful websites 22 2 Introduction Hedge funds have become the focus of a great deal of attention over the past five years both from investors and regulators. For investors hedge funds have become investment vehicles synonymous with high returns. Everyone wants to invest in hedge funds once they are convinced that the term is synonymous with 25 percent-plus annual returns. Regulators sometimes act as if they believe that any investment vehicle earning extraordinarily high returns must either extraordinary risk or crooked. So the reasoning goes investors especially the less wealthy ones particularly eager for high returns must be protected from investing in hedge funds. We will start this paper by defining what is the hedge funds.