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SLIDE 1
Hedge funds can be categorized into five main investment styles.
SLIDE 2
1. Trend following
Also known as managed futures, these profit from exploiting pricing trends in a wide range of instruments such as currencies, interest rates, equities, metals, energy and agricultural commodities.
SLIDE 3
Managers get exposure to these investments through global futures markets, with over 200 standardized futures contracts that can be traded both long and short.
SLIDE 4
Discretionary managers rely on judgment and expertise to make investment decisions.
Systematic managers use mathematical models and high-frequency data analysis to identify and capture price trends.
SLIDE 5
2. Global macro
Managers capitalize on upward or downward trends across markets, asset classes and financial instruments by analyzing macroeconomic indicators and developing an investment thesis.
SLIDE 6
3. Equity hedged
Managers take offsetting long and short positions.
SLIDE 7
The long positions are on undervalued stocks, the short positions are on overvalued stocks.
This is the strategy that started the hedge fund industry.