What is a long short credit fund?

A Long-Short Credit strategy can be defined as the combination of cash products (e.g. straight bonds, which include a credit spread exposure (implied default risk) and an interest rate risk) and hedge overlays (which include three parameters: flexibility for short exposure, the hedging away of unwanted risk [interest …

What do you mean by Credit Fund?

What is a credit fund? It is a type of debt mutual fund scheme, which invests in relatively riskier corporate bonds to earn higher interest rates. So, here you invest in such schemes to have indirect exposure to lower-rated securities to earn higher rates.

What are long only hedge funds?

Long only means what it says: a long-only hedge fund has only long positions in the assets it owns (usually used for equity). So this means that whenever a bear market happens, they will still buy stocks, finding probably the contrarians to the general trend or at least those with the beta closer to zero.

What are long funds?

What Is a Long/Short Fund? A long/short fund is a type of mutual fund or hedge fund that takes both long and short positions in investments typically from a specific market segment.

What is a long short portfolio?

Long-short investing is a diversification strategy that involves taking both long and short positions in the same portfolio. It allows you to hedge against systematic risk by investing in stocks that will profit even during a market-wide decline.

What is Private Credit fund?

Defining Private Credit Broadly defined, a private credit fund targets the ownership of higher yielding corporate, physical (excluding real estate), or financial assets held within a private “lock-up” fund partnership structure.

What is debt fund with example?

Definition: Debt funds are mutual funds that invest in fixed income securities like bonds and treasury bills. Gilt fund, monthly income plans (MIPs), short term plans (STPs), liquid funds, and fixed maturity plans (FMPs) are some of the investment options in debt funds.

Why are some funds long-only?

Traditionally, the majority of mutual funds are long-only, meaning if something was considered undervalued, it would be invested in, and if a security was thought to be overvalued, the only thing investors are able to do is to avoid investing in it.

What does long and short mean?

Having a “long” position in a security means that you own the security. A “short” position is generally the sale of a stock you do not own. Investors who sell short believe the price of the stock will decrease in value. If the price drops, you can buy the stock at the lower price and make a profit.

What are the different types of debt funds?

What are the different types of Debt Funds?

Overnight Funds – invest in 1-day maturity papers (securities)
Liquid Funds – invest in money market instruments maturing within 90 days Floating Rate Funds – invest in floating rate debt securities.
Ultra-Short Duration Funds – invest in debt securities maturing in 3-6 months.

What is a long-only hedge fund?

What is an a long/short fund?

A long/short fund is a type of mutual fund that takes long and short positions in investments typically from a specific market segment.

What is long-short credit?

Long-Short Credit: turning relative return into absolute return. A Long-Short Credit strategy can be defined as the combination of cash products (e.g. straight bonds, which include a credit spread exposure (implied default risk) and an interest rate risk) and hedge overlays (which include three parameters: flexibility for short exposure,

What does equity long-only mean?

As explained in the previous post, a Long position signifies a buying stance while a Short position means an investor is ready to sell securities. In this light, Equity Long-Only means Hedge Funds and other institutional investors are only buying equity- and not selling any.