[Technical traders will
often hedge their positions with options to limit risk or enhance returns.
Not exact matches
Liggett says
hedge fund managers
often pour over the lists of stocks that are owned by some of the top
hedge fund managers, and choose their
positions from there.
This isn't something you will want to use
often, but it can be a helpful way to
hedge positions.
When prime brokers lend less to
hedge funds, or do so on more punitive terms, managers
often have less money to invest and may even sell some
positions to raise cash.
The aim of diversification and
hedging is to avoid commitment to a single outcome by taking multiple and
often opposite
positions, or, as the Cambridge Dictionary puts it, «to protect yourself against loss by supporting more than one possible result».