Hedge Funds: hedge funds are investment funds actively managed for a
limited number of investors and institutions, using a wide range of investment
strategies, methods and tools, such as short selling, derivatives, swaps and
arbitrage. Hedge funds usually require a rather high minimum investment, and
are managed by professionals charging management and performance-based fees.
Overweight: being overweight means that an investor’s
portfolio holds more of a particular type of stock compared to the weight of that
type of stock, in the relevant index. For instance, if an investor’s portfolio
is comprised of 30% Growth stocks, and that Growth stocks represent 20% of the
associated index, the portfolio is referred to as ’10% overweight’ in Growth
stocks.
Spread:
the spread for a security or asset is the difference between the current ask
and the current bid price.
Volatility: volatility is a measure of risk for a security. It
refers to the standard deviation of a security’s price over a certain period of
time. High volatility means that the price of the security tends to move up and
down quickly over a determined period of time, making it more risky.