Bankruptcy auctions are filled with terminology and procedures somewhat nonunderstandable and confusing to the average investor; however, with a basic knowledge of the industry, a first time buyer can not only reduce risk but also tends to close a phenomenal deal. In United States bankruptcy cases, a sale of an asset of a bankruptcy estate requires a court order. A trustee … [Read more...]
Corporate Bankruptcy
Corporate bankruptcy is a legal process whereby the business entity declares that it is unable to meet its obligations, and is seeking protection from legal action by its creditors. In the US, there are two options for businesses under the bankruptcy act; chapter 7 and chapter 11. Any business, from a sole proprietorship to a corporation, can file under either of these two … [Read more...]
What is a Fund of Hedge Funds?
* A diversified portfolio of generally uncorrelated hedge funds. * May be widely diversified, or sector or geographically focused. * Seeks to deliver more consistent returns than stock portfolios, mutual funds, unit trusts or individual hedge funds. * Preferred investment of choice for many pension funds, endowments, insurance companies, private banks and high-net-worth … [Read more...]
facts and benefits of hedge funds
Facts About the Hedge Fund Industry * it is estimated to be a $1 trillion industry and growing at about 20% per year with approximately 8350 active hedge funds. * it includes a variety of investment strategies, some of which use leverage and derivatives while others are more conservative and employ little or no leverage. Many hedge fund strategies seek to reduce market risk … [Read more...]
charactersticts and strategies of hedging
Key Characteristics of Hedge Funds * Hedge funds utilize a variety of financial instruments to reduce risk, enhance returns and minimize the correlation with equity and bond markets. Many hedge funds are flexible in their investment options (can use short selling, leverage, derivatives such as puts, calls, options, futures, etc.). * Hedge funds vary enormously in terms of … [Read more...]