Research on the Application of Hedge Fund
DOI:
https://doi.org/10.54691/bcpbm.v31i.2546Keywords:
Hedge fund; Beta; PE ratio.Abstract
Hedge funds or hedging funds are financial institutions that use hedging trading tactics. It refers to financial money intended to generate profits after merging financial derivatives like financial futures and financial options with financial institutions. It falls under the category of an investment vehicle and is known as a "risk-hedged fund." In this article, the author is concerned about the background, related research, objective, method and data, results, discussion and conclusion. Different investment strategies and theories, such as stock selection and valuation and momentum strategies for stocks and commodities, are discussed in the article. The author uses Stocktrak platform to do some virtual investments and experiments and especially emphasizes the three best trades and the worst trade in the whole investments. Based on those experiences, the author concludes and discusses the application of the hedge fund and mentions the significant role that the overall market and economy play in investments.
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