Short Hedge

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Экономический словарь

Сделка, включающая продажу
фьючерса с
целью хеджирования длинной позиции на наличном рынке. Иногда называется хеджем производителя.

Смотреть значение Короткий Хедж (short Hedge) в других словарях

Короткий 2 — краткий
недолгий
непродолжительный
кратковременный
недолговременный
краткосрочный
минутный
Словарь синонимов

Короткий — краткий, недлинный, недолгий, невысокий; недальний, недлительный; небольшой, малый по длине, маломерный; близкий; скорый, спешный. У коротких ног и шаг коротки. Он короток.
Толковый словарь Даля

Короткий Прил. — 1. Небольшой, малый по длине (противоп.: длинный). // Невысокий, низкий. 2. Непродолжительный, малый по времени (противоп.: долгий). // Скорый, быстрый (о движениях, действиях.
Толковый словарь Ефремовой

Короткий — короткая, короткое; короток, коротка, коротко. 1. Небольшой по длине; противоп. длинный. Короткая палка. путь. Короткие ноги. Короткие волосы. коротко (нареч.) обстрижен.
Толковый словарь Ушакова

Пипин Короткий — (714–768) – военачальник и мажордом Меровингов, основатель династии Каролингов и ниспровергатель Хильдерика III (последнего из меровингской династии). Отец Карла Великого.
Политический словарь

Короткий — -ая, -ое; ко́роток и (устар.) коро́ток, коротка́, ко́ротко, коротко́ и (устар.) коро́тко, ко́ротки, коротки́ и (устар.) коро́тки; коро́че.
1. Небольшой, малый по длине (противоп.
Толковый словарь Кузнецова

Короткий — Восходит к общеславянскому kortb, имеющему, вероятно, индоевропейскую природу. Так, в латыни находим curtus – “укороченный”.
Этимологический словарь Крылова

Вексель Короткий — – вексель, оплачиваемый при предъявлении или в короткий срок (не более 10 дней).
Юридический словарь

Хедж — [хэ], -а; м. [англ. hedge – препятствие] Финанс. Договор на продажу (покупку) ещё не изготовленного товара с одновременным осуществлением сделки противоположного характера.
Толковый словарь Кузнецова

Идеальный Хедж — – хедж, который полностью исключает как возникновение будущей прибыли, так и потери от колебаний конъюнктуры.
Юридический словарь

Короткий Вексель — – вексель, оплачиваемый при предъявлении или в течение короткого срока (не более 16 дней).
Юридический словарь

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Хедж — (англ. hedge – ограда) – в биржевой терминологии срочная сделка, страхующая от возможного падения цены. Такого рода операции проводятся в США на фондовых и опционных рынках.
Юридический словарь

Хедж-фонд — – инвестиционная компания, скупающая и продающая ценные бумаги конкретных фирм и выпусков.
Юридический словарь

Пищевод Короткий Врожденный — (brachyoesophagus; син.: брахиэзофагус, желудок грудной) аномалия развития, при которой дистальный отдел пищевода выстлан желудочным эпителием; проявляется желудочно-пищеводным.
Большой медицинский словарь

Разгибатель Большого Пальца Кисти Короткий — (musculus extensor pollicis brevis, PNA, BNA, JNA) см. Перечень анат. терминов.
Большой медицинский словарь

Разгибатель Большого Пальца Стопы Короткий — (musculus extensor hallucis brevis, PNA, BNA, JNA) см. Перечень анат. терминов.
Большой медицинский словарь

Разгибатель Запястья Лучевой Короткий — (musculus extensor carpi radialis brevis, PNA, BNA, JNA) см. Перечень анат. терминов.
Большой медицинский словарь

Разгибатель Пальцев Стопы Короткий — (musculus extensor digitorum brevis pedis, PNA, BNA, JNA) см. Перечень анат. терминов.
Большой медицинский словарь

Короткий Парламент — в Англии накануне Английской революции 17 в. – в апреле- мае 1640. Назван в противоположность Долгому парламенту (1640-53).
Большой энциклопедический словарь

Сгибатель Большого Пальца Кисти Короткий — (m. f. pollicis brevis, PNA, BNA, JNA) см. Перечень анат. терминов.
Большой медицинский словарь

Сгибатель Большого Пальца Стопы Короткий — (m. f. hallucis brevis, PNA, BNA, JNA) см. Перечень анат. терминов.
Большой медицинский словарь

Сгибатель Малого Пальца Стопы Короткий — (m. f. digiti minimi brevis pedis, PNA) см. Перечень анат. терминов.
Большой медицинский словарь

Сгибатель Мизинца Кисти Короткий — (m. f. digiti minimi brevis manus, PNA) см. Перечень анат. терминов.
Большой медицинский словарь

Сгибатель Пальцев Стопы Короткий — (m. f. digitorum brevis pedis, PNA, BNA, JNA) см. Перечень анат. терминов.
Большой медицинский словарь

Сгибатель Пятого Пальца Стопы Короткий — (m. f. digiti quinti brevis, pedis, BNA, JNA) см. Перечень анат. терминов.
Большой медицинский словарь

Супинатор Короткий — (m. s. brevis) см. Перечень анат. терминов.
Большой медицинский словарь

Пипин Короткий — (Pippinus Brevis) (714-768) – франкский король с 751.Будучи майордомом, сверг в 751 последнего короля из династии Меровингов иосновал династию Каролингов.
Большой энциклопедический словарь

Короткий Парламент — – в Англии накануне революции XVII в. в апреле—мае 1640 г. Назван в противоположность Долгому парламенту — в 1640— 1653 гг.
Исторический словарь

Пипин Короткий — Король франков из рода Каролингов, правивший в 751 -768 гг. Ж.: Бертрада. Умер 24 сент. 768 г. Незадолго до смерти в октябре 741 г. майордом Карл Мартслл разделил государство.
Исторический словарь

Understanding Hedge Fund Strategies: Equity Long / Short

As part of our series looking at the strategies hedge funds commonly use to their advantage, let’s take a look now at one of the most popular strategies out there.

The equity long/short strategy is actually one of the building blocks of the original hedge fund movement, and can be traced back to the earliest days of these investment mechanisms. At their most essential, hedge funds are in the business of managing investment risk, and the long/short strategy is a very effective method of doing just that. Let’s see how it works.

Long/Short – the Basics

An equity long/short strategy is a method of investing that involves taking long positions in stocks that are expected to increase in value and short positions in stocks that are expected to decrease in value. The long/short equity strategy is popular with hedge funds, many of which employ a market-neutral strategy where the dollar amounts of the long and short positions are equal.

Long – Taking a long position in a stock basically means buying it: if the value of this stock increases in value then you will make money.

Short – Taking a short position, however, is a way of saying that you are borrowing a stock you don’t own, often from your broker, then selling it on in the hopes that it will decline in value. This enables you to buy it back at a lower price than you paid for it and return the borrowed shares.

Hedge funds then employ this strategy on a larger scale, as means of both profiting from a change in the difference, or spread, between two stocks, as well as minimizing their exposure to the market.

Profiting from long/short – essentially this strategy means buying an undervalued stock and shorting an overvalued stock. What hedge funds want to happen next is for the long position to increase in value, and the short position to decline in value. If this happens, and the positions are of equal size, the hedge fund will profit. But part of the reason that this strategy is so popular, and that it is viewed as a less risky investment method, is that it’s a strategy that works so long as the long position outperforms the short position – even if the long position actually declines in value.

An example

To understand better how this strategy works in real terms, let’s look at a simple example using the auto industry. A hedge fund may decide to sell short one automobile industry stock, while buying another, as the fund manager believes one stock will perform better than the other. For example, a fund could short $1 million of DaimlerChrysler, while going long $1 million of Ford.

In this example, any event that causes all auto industry stocks to fall will cause a profit on the DaimlerChrysler position while delivering a matching loss on the Ford position.

Equally, any event that causes both stocks to rise, such as a rise in the market as a whole, will have little or no effect on the position.

This means that the hedge fund should make a profit irrespective of market and sector moves if the fund manager has got things right and the Ford stock does outperform DaimlerChrysler. It also means that the investment risk is minimal.

Types of Long/Short Sub-Strategy:

Long/short is a type of equity hedge strategy and is one of the simplest strategies to get your head around. While many hedge funds employ this basic long/short method, they can use a variety of sub-strategies to achieve this.

Long/Short with leveraging – most funds will have positive exposure to the equity markets – say 70% of their funds are invested long while 30% are invested short. This means their net exposure is 70% – 30%, ie, 40%, while their gross exposure would be 100%. This indicates no leverage.

However, managers may wish to increase the fund’s long positions, to say 80%, while retaining the 30% short. This means an adjusted gross exposure of 80% + 30%, ie, 110%, which indicates leverage of 10%.

Long bias – this type of long/short strategy, for example, investing at a ‘130/30’ ratio of long to short (130% long and 30% short), or ‘120/20’, are known as long bias strategies. Fewer hedge funds employ a short bias over the longer term, as equity markets tend to move up over time.

Market Neutral – managers can minimize the exposure to the broad market and make their funds market neutral in a number of ways. Firstly they can invest equal amounts in long and short positions, eg, 50% long and 50% short means net exposure is 0% and gross exposure is 100%.

Secondly, they can ensure zero beta exposure. In this case, the fund manager would seek to make investments in both long and short positions so that the beta measure of the overall fund is as low as possible. In either of the market-neutral strategies, the fund manager’s intention is to remove any impact of market movements and rely solely on his or her ability to pick stocks.

Paired trades – this term is used when a fund employs the long/short strategy to buy and sell two related stocks, usually two stocks within the same region or industry. They do this as it may allow them to limit the risk to a specific subset of the market rather than just to the market in general.

Employing Long/Short Strategies

Long/short strategies are also popular because they can be employed across a range of different geographic regions, sectors and industries, such as technology, health, or financial. They can also be employed by funds across a range of investment styles, including value or quantitative.

Either of these long/short strategies can be used within a region, sector or industry, or can be applied to market-cap-specific stocks, etc. In the world of hedge funds, where everyone is trying to differentiate themselves, you will find that individual strategies have their unique nuances, but all of them use the same basic principles described here.

Problems

Just because the long/short strategy minimizes risk does not make it risk-free. There exist many difficulties when it comes to successfully managing long/short funds:

  • To turn a profit, the fund must be able to predict which stocks will perform better. This not only requires making intelligent use of research and the available information – it means making better use of the available information than large numbers of capable investors.
  • A fund must be able to realistically estimate and hedge the risks to which their portfolio is exposed.
  • A fund must also be able to manage unsuccessful short positions in a very active manner.
  • The fact that hedge funds are generally not as liquid as mutual funds can make it more difficult to sell shares in practical terms
  • Because of the skill involved in successfully managing a long/short fund, these hedge funds can have high fees
  • The risk of ‘beta mismatch’, which in very basic terms means that when the stock market declines sharply long positions can lose more than short positions.

The Benefits of Long/Short

  • Many investors concentrate on selecting winning strategies for long portfolios, but long/short strategies, and the implementation of selling short, frees investors up to take advantage of a far wider array of securities.
  • The successful management of a fully integrated portfolio of long and short positions can help to increase returns, even in difficult market conditions.

Short hedge

The sale of futures contracts to eliminate or lessen the possible decline in value of an approximately equal amount of the actual financial instrument or physical commodity. Related: Long hedge.

Copyright © 2020, Campbell R. Harvey. All Worldwide Rights Reserved. Do not reproduce without explicit permission.

These Are The Top 50 Hedge Fund Long And Short Positions

In its latest quarterly hedge fund trend monitor – a survey of 804 hedge funds with $2.1 trillion of gross equity positions ($1.4 trillion long and $704 billion short) – which analyzes hedge fund holdings as of Sept 30, Goldman makes some interesting observations about the current state of the hedge fund industry. First and foremost, it finds that the average equity long/short hedge fund has posted a 10% YTD return, which while the strongest since 2020 is once again underperforming the S&P for the 7th consecutive year.

In terms of holdings, it’s a continuation of what we discussed the last two quarters – everyone and their kitchen sink is plowing into high beta, “growty” and “momentum” tech names, and since most funds still underperform the S&P, the average net leverage is at all time high. Here’s Goldman:

Fund performance has been lifted by sector (Information Technology) and factor (growth, momentum, large-cap) exposures. Our Hedge Fund VIP list of the most popular long positions, whose top five stocks are FB, AMZN, BABA, GOOGL, and MSFT, has outperformed the S&P 500 by 770 bp YTD (25% vs. 17%).

Also notable, while at least on paper hedge funds are expected to diversify, in reality the average HF carries 68% of its long portfolio in its top 10 positions, just below the record high reached in early 2020. Meanwhile, confirming that the market is afflicted by a creeping paralysis, portfolio position turnover fell to a new record low last quarter, at just 13% for the largest fund positions. Oh yes, and nobody is short: hedge fund short interest as a percent of S&P 500 market cap remained close to 2%, near the lowest level in five years.

Below are Goldman’s 5 key observations from this edition of the HF Trend monitor:

  1. PERFORMANCE: The average equity long/short hedge fund has returned +10% YTD on the strength of the most popular long positions, high exposure to Information Technology, and atypical factor tilts toward large-caps and away from value stocks. This ranks as the strongest return since 2020 and compares with 17% for the S&P 500, 16% for the average large-cap core mutual fund, and 2% for macro hedge funds.
  2. SECTORS: Information Technology remains the largest net sector exposure, accounting for 27% of fund portfolios. However, the 307 bp overweight tilt relative to the Russell 3000 is 100 bp smaller than at the start of 3Q. Materials represents the largest sector overweight. Financials is the largest underweight and a major source of disagreement with large-cap mutual funds, which are overweight the sector. Current overweights in Energy and Consumer Discretionary are nearly the smallest tilts in recent history, as is the underweight in Utilities.
  3. LEVERAGE: Hedge funds increased net leverage in 3Q 2020 as the most popular positions continued to outperform a rising equity market. Short interest as a percent of S&P 500 market cap remained close to 2%, near the lowest level in five years.
  4. VERY IMPORTANT POSITIONS: Our Hedge Fund VIP list (ticker: GSTHHVIP) of the most popular long positions has outperformed the S&P 500 by 770 bp YTD. The VIP list contains the 50 stocks that appear most often among the top 10 holdings of fundamentally-driven hedge fund portfolios. The basket’s absolute and risk-adjusted YTD returns rank as the strongest since 2020. The list’s top 5 stocks are FB, AMZN, BABA, GOOGL, and MSFT. The basket has outperformed the S&P 500 in 65% of quarters since 2001, generating an average quarterly excess return of 62 bp. 10 new constituents entered the basket this quarter, compared with a quarterly average of 16 stocks since 2001: EQIX, GDDY, IAC, IQV, MGM, MPC, NRG, SBAC, TTWO, and XPO.
  5. CROWDING AND TURNOVER: Hedge funds continue to demonstrate high conviction in their favorite positions. The typical hedge fund has 68% of its long equity assets in its top 10 positions, just below the record high of 69% in 1H 2020. Similarly, our crowding index increased but remains shy of its 2020 extremes. Quarterly turnover of the largest portfolio positions fell to new historical lows, at 13%, declining in all sectors but Health Care.

The biggest component of the favorable hedge fund return in Q3 was a result of the outperformance of the Goldman Hedge Fund VIP basket, also known as the “hedge fund hotel”index, a list of 50 names which are the most widely held hedge fund stocks. Good luck selling them during a firesale, as happened in early 2020 when the GSTHHVIP basket crashed, wiping out four years of gains in a few months.

With no crash yet, and despite softness during the last month, Hedge Fund VIP names outperformed the broad market YTD both in absolute and risk-adjusted terms according to Goldman.

The basket’s strong return has more than made up for its higher volatility (8 vs. 6 for S&P 500), combining for a YTD ratio of return/volatility of 3.0, above the ratio of 2.8 for the S&P 500 and the best since 3.2 in 2020.

What is more concerning is that as discussed the past two quarters, the trend of growing hedge fund leverage (to make up for loss of alpha), continues, and according to Goldman, funds added net leverage entering 4Q. Data calculated by Goldman Sachs Prime Services on exposures in their business show that net leverage has risen in recent months and is near cycle highs.

Meanwhile, everyone has given up on shorting: in fact, short interest as a share of S&P 500 market cap sits just below 2.0%, matching January of this year as the lowest level since 2020. Relative to trading volumes, the short interest ratio (days to cover) ranks higher compared with history but still far below the cycle high in 2020.

Predictably, with market leadership increasingly more concentrated, and with fewer leaders, the density of hedge fund portfolios is near all time highs.

Hedge fund crowding in the most popular positions rose slightly in 3Q 2020 but remains below the extremes reached in 2020. The average hedge fund holds 68% of its long portfolio in its top 10 positions, just below the record “density” of 69% in 1H 2020. The increase in hedge fund portfolio density mirrors the growing share of S&P 500 market cap accounted for by the 10 largest index constituents, which has risen steadily for two years but even now sits near the average level since 1990.

As a tangent, those who were long tech, remained long tech as the average infotech portfolio turnover dropped to the lowest on record.

So putting it all together, here are the 50 positions which make up the latest GS VIP list, i.e., the 50 most popular hedge fund longs.

. and the list of 50 stocks representing the most important short positions.

Finally, here are the 20 stocks with the highest positive and negative changes in popularity.

As a reminder: traditionally, being long the most shorted hedge fund names and shorting the most favored ones has been a source of double digit alpha ever since 2020, and while this year that may have been different, for now, there is no reason to assume this normalcy will persist especially once the revulsion with tech names reappears once more.

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