The Discussion Of Hedge Fund Operation

Among all the financial institutions that control international hot capital in large scale, hedge funds are undoutedly the most representatiove ones. During the several decades of history of hedge funds, people have witnessed from time to time the great impact of hedge funds on the international finance, regional finance and national systems. Although the study of hedge funds has been very profound internationally, the domestic study lagged behind both in the depth and the profoundity. In recent years, China has been in the progress of the reform of foreign exchange regime, and it is the time for hedge funds to think about or even implement their attacking plan.In order to build a framework of the basic knowledge and the functioning of hedge funds, the author divided the dissertation into 6 chapters.In the first chapter, the dissertation draws a main outline of hedge funds from the aspects of the coming into forth, appearance, and the development of the whole industry. On this basis, the definition was made in the general sense. In light of the understanding of those well performing hedge funds, the author picked 3 bad performing hedge funds so as to eliminate some misunderstanding. As an important part of the summary, 14 types of hedge funds were listed, and those types almost cover all the hedge funds. On the ground of the industry in the U.S.A, the dissertation innovatively put forward the concept of entironment of laws. In the ending, it briefly summarizes the investment models of hedge funds from the qualitative perspective.In the second chapter, the dissertation enters into the core study. In this part, the emphasis was put on the major instrument used by hedge funds—leverage. First it...