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Absolutely. The real original term was "hedged fund" and not "hedge fund". I can only feel the pain of the guy [0] who invented the term, when he saw that his e
by bionsystem 3y ago
Absolutely. The real original term was "hedged fund" and not "hedge fund". I can only feel the pain of the guy [0] who invented the term, when he saw that his entire industry dumbed it down.
[0] https://en.wikipedia.org/wiki/Alfred_Winslow_Jones https://en.wikipedia.org/wiki/Alfred_Winslow_Jones
- edgyquant 3y agoI mean, this link literally says he coined the term to mean “a fund that is hedged against market risk” so I have no idea what you two are even arguing? A hedge fund is a fund that hedges against volatility and that is always what the name has implied. So my comment is right and you two are wrong even by your own sources.
- bionsystem 3y ago"hedged fund" implies that the fund itself is hedged. It is the original and correct term (hence the link). "hedge fund" implies that the fund IS a hedge (presumably against other assets one might own). Except that in and of itself the fund cannot hedge you without knowing what you own. Nowadays, everything is called a "hedge fund" incorrectly - they should be called "hedged fund" as per the original term. They provide diversification and hopefully some return above CPI, or some well-defined risk-adjusted return. By the way, "hedging against volatility" doesn't mean much. Most of those funds are short volatility.