The following glossary aims to assist you in understanding some of the hedge fund concepts and abbreviations that you may encounter on our website.

• All Definitions
  
  
• Absolute-return fund
• Accredited investor
• Activist investment strategy
• Administrator
• Aggressive growth
• Alpha
• Alternative assets
• Annual rate of return
• Arbitrage investment
• Assets under management
• Average Annual Return
• Average monthly return
• Average rate of return
• Back-test
• Beta
• Bond-futures arbitrage investment strategy
• Bottom-up investment strategy
• Capital-structure arbitrage investment strategy
• Clearing
• Clearinghouse
• Closed fund
• Collateralized debt obligation (CDO)
• Collateralized fund obligation (CFO)
• Commodity trading advisor (CTA)
  • Compounded monthly return
• Convergence investment strategy
• Convertible arbitrage investment strategy
• Convertible bonds
• Country-specific investment strategy
• Custodian
• Derivative
• Discretionary account (managed account)
• Distressed securities investment strategy
• Diversification
• Drawdown
• Efficient frontier
• Eligible investor
• Emerging-markets investment strategy
• Event-driven investment strategy
• Even risk
• Exposure
• Fair value
• Fixed income investment strategy
• Fixed income arbitrage investment strategy
• Forward contract
• Fund of Funds (multi-manager vehicle)
• Fundamental analysis investment strategy
• Futures contract
• General partner
• Global-macro investment strategy
• Grandfathered fund
• Haircut
• Hedge fund
• Hedged equities investment strategy
• High-water mark
• Hurdle rate
• Incentive fee (performance fee)
• Inception date
• International investment strategy
• Joint back office
• Jones model
• Lamp letter
• Leverage
• Limited partnership
• Liquidity
• Liquidity risk
• Lock-up
• Long-biased investment strategy
• Long-only investment strategy
• Long/short investment strategy
• Managed futures
• Management fee
• Margin loan
• Margin call
• Market-neutral investment strategy
• Market-neutral option arbitrage investment strategy
• Market timer
• Master-feeder fund
• Merger arbitrage investment strategy
• Minimum investment
• Mortgage-backed securities arbitrage investment strategy
• Multi strategy
• Net asset value (NAV)
• Net-fee requirement
• Netting
• Offshore fund
• Operational risk
• Opportunistic value investment strategy
• Option
• Options arbitrage investment strategy
• Options investment strategy
• Pairs trading investment strategy
• Payment netting (netting by novation)
• Performance trigger
• PIPEs
• Pooled investment vehicle
• Portfolio manager
• Portfolio turnover rate
• Prime broker
• Principal-protected note
• Private-quity fund
• Private placement
• Qualified investor
• R-squared
• Rate of return
• Redemption fee
• Redemption notice period
• Redemption
• Regional investment strategy
• Regulation D
• Regulation D investment strategy
• Regulation T
• Relative-value investment strategy
• Reporting agent
• Risk arbitrage investment strategy
• Risk-free rate
• Rule 506
• Section 3(c)(1)
• Section 3(c)(7)
• Sector investment strategy
• Settlement
• Sharpe ratio
• Short-biased investment strategy
• Short-only investment strategy
• Short sales
• Short-term trading strategy
• Small cap/micro cap investment strategy
• Soft dollars
• Sophisticated investor
• Sortino ratio
• Special situations investment strategy
• Specialized hedged financing
• Spread
• Standard deviation
• Statistical arbitrage investment strategy
• Stock-futures arbitrage investment strategy
• Swap contract
• Survivorship bias
• Ten commandments
• Top-down investment strategy
• Traditional investments
• Value investment strategy
• Value at risk (VaR)
• Value-added monthly index (VAMI)
• Venture capital
• Volatility
• Volatility arbitrage investment strategy
• Warrant