Hedge Fund Research Guide The origin of Hedge Funds dates back to the year 1948 when Alfred Jones, a Harvard University graduate, while writing about current investment trends was inspired to try his hand at managing money He followed his instinct and came up with the innovation to sell short some stocks while buying others Thus, he raised $100,000 and got some of the market risk hedged Further, he employed leverage in an effort to enhance his returns Then in ...

Analysis Of Modern Portfolio Theory The foundation of modern portfolio theory (MPT) was introduced by Harry Markowitz in 1952 Thirty-eight years later, Harry Markowitz, Merton Miller and William Sharpe were awarded Nobel Prize for what has become a broad theory for portfolio selection Modern portfolio theory (commonly referred as mean variance analysis) established a whole new terminology which became a norm among investment managers (Gupta, FrancisMarkowitz, Fabozzi, Frank 2002) It has wide application in different areas of financial management such ...

Offshore Banking - When It Pays To Go Abroad While you might presume anyone with ‘money in offshore accounts’ is involved in some scurrilous business affairs, the truth is that anyone can use this form of investment as a totally legitimate way to defer or reduce your tax payments Locations for offshore accounts can be held in banks in British waters – the Channel Islands or Isle of Man for example, or you could look further afield to the Republic of ...

Rethink The Way You Calculate Your Retirement Number You may just pick a number and set that as your retirement number, but make sure that it is accurateYou are facing either living on too tight a budget or outliving your money if you choose wrong It is a vital decision that you need to makeFinancial experts and institutions are preaching the necessity of finding the right retirement strategy No longer are retirees simply moving all their money into CDs -- ...

Venture Capital Investors While evaluating the profitability of venture capital investment proposals under the capital budgeting techniques such as Net Present Value (NPV) and Internal Rate of return are used It should be noted here that these sophisticated methods use the “cost of capital” as the criterion to accept or reject an investment proposalUnder the NPV method, the cost of capital is used to discount the future cash flows, whereas under the Internal Rate of return method, the cost of ...

Home Equity Benefits: Don't Be Caught Saying I Wish I Would Of The accelerating prices of homes in many parts of the US have created substantial equity positions for homeowners The available equity sitting in the home is a lure for financial advisors (who would like you to invest through them) The homeowner now has gained a large potential financial asset that he wants to protect What should be done with this equity, if anything? Many financial strategist advise that you ...

Financial Risk, Investment In College And Academic Clout Often Over Blown All too often academia misleads parents and college students into believing that their institutions carry clout In fact in the end it is the individual not the school, which provides propulsion in one’s career you see? One thing that colleges and universities always tell students and parents during pre-enrollment visits is that; “Our institution places 85% of our graduates in the Fortune 500 Companies”Well that is just grand, but ...

Understanding And Trading Put Options Copyright 2006 Billy Williams Put options are a misunderstood investment tool but once understood by an individual investor it can be a very versatile investment tool Put options can be used to protect your portfolio, and they can help you pick up huge profits by controlling the stock of a company during a price decline and profiting from the decline Plus, put options offer strictly limited risk If an option trade goes the wrong way, you ...

International Business Finance Many firms are interested in investing and seeking finance from foreign sources and exporting goods and services to foreign countries Overseas involvement of firms is increasing, and this trend is expected to continue This has been stimulated by a variety of forces First is the change in the international monetary system from a fairly predictable system of exchange to a flexible and volatile system of exchange Second is, emergence of new institutions and markets, particularly the Eurocurrency ...

Understanding The Basics Of Options Copyright 2006 Billy Williams Options are a misunderstood investment tool but once understood by an individual investor it can be a very versatile investment tool Options can be used to protect your portfolio, and they can help you pick up huge profits by controlling the stock of a company very cheaply Plus, options offer strictly limited risk If an option trade goes the wrong way, you won't lose more than your initial investment plus commissions So what ...