What is a hedge fund anyway?

In three words: leveraged absolute returns A hedge fund is a specific type of investment fund, focused on generating absolute returns, often using various types of leverage and investing in publicly traded instruments. Absolute returns mean that  the funds focus on generating a specific return, regardless of what stock market is doing. Most investment funds’ … Continue reading

Trading

General trading articles Taking an algorithmic approach automates your trading, but it requires a clear understanding of your own principles and process. So it’s all relevant anyway. The efficient markets hypothesis haunts traders with its doom-and-gloom; however, it’s clear that it makes a number of unrealistic assumptions before prematurely coming to a conclusion. Have no fear, and give … Continue reading

If you believe the efficient markets hypothesis, don’t follow this blog

In order to help you understand how to improve your investment returns, dear reader,  I wanted to rant on how academic economists, supposedly the bastions of rational thinking, independent of commercial bias, the smartest of the smart, created and promoted a completely irrational theory, causing millions of people to not even consider investing for fear … Continue reading

Question: how important is VBA and C++?

gabx asks: Question How important is the knowledge of VBA and C++ for working as an analyst or as a risk manager in hedge funds. I would like to develop these skills and bought some books which deal with modelling derivatives pricing in VBA/C++/Matlab. Do you have in mind a specific book/area I should focus … Continue reading

CAIA Program Benefits: Why Take The CAIA Exams?

A quant trader friend of mine at a hedge fund dubbed Hedge Funds: Quantitative Insights by L’Habitant -once a major book in the CAIA program– as “Hedge Funds 101”. This is true of the CAIA program as a whole. The book itself is a good introduction to how the industry works, and how investors evaluate … Continue reading

About

You’re probably wondering whether you are dealing with a reliable source….fair enough. About the Author Well, I’ve been in the hedge fund software industry for over 5 years, at a company named Linedata, which makes middle and back office solutions for hedge funds. Currently, I’m a developer again. I work on the real-time hedge fund … Continue reading

Submit a Question

Please ask specfic questions: Use the first sentence to summarize what you are asking about Describe your goal, then the step(s) you are finding challenging The more specific the question, the better. If possible, include a specific example of what you want to understand better, such as a specific function in a cell or a … Continue reading