black box

The main myth about hedge funds is, that these are "black boxes" - closed and opaque, and none of the clients understands, where are their funds invested. How Hedge Funds Really Work and How They Provide High Returns? The first hedge fund appeared in 1949 year. At the time, his functions were limited to hedging a portfolio of stocks with short positions., hence the name. Such tactics allowed successful funds to demonstrate performance, dozens of times outstripping the market. By now, the industry has evolved a lot - much more, than the finance industry in general. All technological innovations in the field of investment originate in hedge funds.