What strategies do hedge funds use?

[shark]

Certainly the managers don't stare at a chart and follow the stochastic oscillator, so what do they really do to determine trade decisions?

 

[MGJ]

It's all written down in a book. Every strategy that every hedge fund manager everywhere uses, is completely laid bare and thoroughly discussed. There are no "secret formulas" or "proprietary systems" or "well developed human instincts", just this one set of strategies in this one book, which anybody can buy and read and implement for themselves. If you scoot down to Powell's, or The Strand, or Stacy's, or Foyle's, or City Light, they'll sell you a copy straightaway. Ask for "Cyclopaedia of Hedge Fund Strategies, volumes 1 and 2".

 

[ksthomsen]

Too funny!

 

[shark]

well its obvious that I can't really expect detailed strategies but maybe someone knows what their tactics are based on..technical analysis using indicators, fundamental analysis, or something else.

 

[ProfitTakgFool]

yes

Quote from shark:

well its obvious that I can't really expect detailed strategies but maybe someone knows what their tactics are based on..technical analysis using indicators, fundamental analysis, or something else.

 

[makloda]

A brief overview of the most common headline strategies

http://www.amazon.com/Investment-Strategies-Hedge-Funds-Finance/dp/0470026278/ref=pd_sim_b_5

 

[jasonjm]

the most common hedge fund strategy is as follows

1) buy lots of computers and print out lots of complicated info
2) go long the market (any market) with no hedges, at high leverage. Call it an early month and dont come into the office more than once a month, party every night.
3) while out partying, network, make contacts, and have jp morgan or GS take a small position in your fund
4) when the market is going against you, call GS or JP morgan and remind them that they are losing money too
5) JP and GS call the PPT and the fed, who then bail out their buddies with taxpayer money, and then the hedge fund is safe

the end

 

[Thunderdog]

Quote from shark:

Certainly the managers don't stare at a chart and follow the stochastic oscillator, so what do they really do to determine trade decisions?

They closely follow all of the prediction threads on ET.

 

[OddTrader]

Quote from shark:

Certainly the managers don't stare at a chart and follow the stochastic oscillator, so what do they really do to determine trade decisions?

Perhaps All hedge fund managers that are really smart should have simply used JH's strategies for the world's best possible performance they would want to attain.

Quote from Thunderdog:

They closely follow all of the prediction threads on ET.

 

[Surdo]

Just ask Timmmmay!