Page 216 - A Canuck's Guide to Financial Literacy 2020

216

▪ Lack of Transparency

Many hedge funds are secretive about their investment operations. They’re not
required to report financial performance, disclose their holdings or answer
questions to shareholders.

Hedge Fund Strategies

Hedge fund strategies are broad with various risk appetites and investment philosophies.
These strategies utilize various investment instruments such debt, equity, commodities,
currencies, derivatives, real estate and more! Below we’ll discuss the most common
strategies that hedge funds may engage in.

▪ Global Macro

Hedge funds that embrace a global macro strategy aim to make their
investment decisions based on the political and economic outlook of various
countries. This type of strategy would analyze the country’s economy and
evaluate various economic trends. Currency traders and interest rate portfolio