- Q -
Stands for Risk Adjusted Return On Capital.
A charge, intended to discourage withdrawals, that a
hedge-fund manager levies against investors when they cash in
their shares in the fund before a specified date.
A fund-imposed limit on the amount of investment that may
be withdrawn at a time from a fund.
redemption notice period
The amount of advance notice that an investor must give a
hedge-fund manager before cashing in shares of the fund.
regional investment strategy
An approach in which the fund manager invests in
instruments that are issued by companies or governments in a
specific geographical region.
Performance over a period.
A market-neutral investment strategy that seeks to
identify investments, whose values are attractive, compared to
similar securities, when risk, liquidity and return are taken
A third-party individual or company that verifies a fund's
Another name for performance
Stands for Reuters Instrument Codes, Symbol used by
risk arbitrage investment
Purchasing stocks of companies that are likely takeover
targets, while assuming short positions in the would-be
acquiring companies. Risk arbitrage players can employ an
event-driven investment strategy or merger arbitrage
investment strategy, seeking situations such as hostile
takeovers, mergers and leveraged buyouts.
A measure of the degree to which a hedge fund's returns
are correlated to the broader financial market. A figure of 1
would be a perfect correlation, while 0 would be no
correlation and minus-1 would be a perfect inverse
correlation. Any figure below 0.3 is considered
non-correlated. The result is used to determine whether a
hedge fund follows a market-neutral investment strategy.
Sometimes referred to as "R".
Stands for Rate of Return