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[–][deleted] 3 insightful - 3 fun3 insightful - 2 fun4 insightful - 3 fun -  (1 child)

Well actually Hedge Funds use "hedging mathematics" to manage investments, ideally attempting to maximize RARORAC, that is, Risk-Adjusted Return On Risk-Adjusted Capital. Basically what this means is that Risk Management (or "Hedging") can be used to add/remove certain risk factors from some investments or portfolios, tailoring the risk to a certain targeted profile, as per the fund's description.

In other words, Hedge funds can go from hyper-stable, market-neutral, steady return profiles, to wild speculation.

[–]Tom_Bombadil[S] 3 insightful - 3 fun3 insightful - 2 fun4 insightful - 3 fun -  (0 children)

Hedge funds can go from hyper-stable, market-neutral, steady return profiles, to wild speculation.

I'm a simple blacksmith, who enjoys seeing the banksters take a beating.

Also, Blacksmiths are a suspicious lot.