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Hedge fund (free fund)

A hedge fund is a flexible-strategy fund sold only to qualified investors, exempt from portfolio limits and free to use leverage and derivatives. Hedge funds are not subject to the asset allocation limits the CMB applies to other funds.
Contents
  1. 1.Key points
  2. 2.Formula / calculation
  3. 3.Interpretation
  4. 4.Pitfalls
  5. 5.Frequently asked questions

Key points

  • They may use short selling, VIOP derivatives, concentrated positions and leverage; for this reason they are offered only to qualified investors above certain wealth or experience thresholds.
  • Hedge funds can target returns in falling markets and offer low correlation with conventional funds; they are a diversification tool for institutional and high-net-worth investors.
  • transparency is lower and strategy risks are hard to understand.

Formula / calculation

trading usually takes place outside TEFAS through the founder with longer settlement (weekly, monthly). Performance fees (a percentage of return) are common. Yatırımcı.AI lists publicly available price and return data for hedge funds.

Interpretation

Hedge funds can target returns in falling markets and offer low correlation with conventional funds; they are a diversification tool for institutional and high-net-worth investors.

Pitfalls

transparency is lower and strategy risks are hard to understand. Leverage magnifies losses. Liquidity is low and exits may be limited to set days. Performance fees significantly reduce net return.

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Frequently asked questions

A hedge fund is a flexible-strategy fund sold only to qualified investors, exempt from portfolio limits and free to use leverage and derivatives.

trading usually takes place outside TEFAS through the founder with longer settlement (weekly, monthly). Performance fees (a percentage of return) are common. Yatırımcı.AI lists publicly available price and return data for hedge funds.

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