Hedge Fund Trading Strategies: Backtests and Examples Analysis

There are many kinds of funds, ranging from illiquid private equity funds to highly liquid mutual funds and ETFs that are available to the public. Hedge funds occupy the sweet middle, but what are hedge fund trading strategies?

Hedge fund trading strategies are an investment pool contributed by a limited number of private investors and operated by a professional manager with the goal of maximizing returns and minimizing risk. Hedge fund investment is often considered a risky alternative investment choice and usually requires a high minimum investment. So, they are meant for accredited investors and institutions.

In this post, we take a look at hedge funds and their strategies and how you can make your own “one-man hedge fund”. At the end of the article, we show you some real results, examples, and backtests of hedge fund trading strategies.

Table of contents:

What is a hedge fund?

A hedge fund is an investment pool contributed by a limited number of private investors and operated by a professional manager with the goal of maximizing returns and minimizing risk. Hedge fund investment is often considered a risky alternative investme