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What are Hedge Funds?

UBS Alternative Investments, 7 January 2011

12 Pages Posted: 3 Mar 2011 Last revised: 28 May 2013

Sameer Jain

Active Allocator Inc.; Massachusetts Institute of Technology (MIT); Harvard University

Date Written: March 1, 2011


This primer is designed to assist investors in furthering their understanding of the hedge fund space. It explains the basics of hedge funds, introduces concepts of credit and market risk arbitrage, explains popular trading strategies and provides examples of arbitrage trades in an easy to understand form. The primer series also explains hedge funds' asset characteristics and provides insights into the manner in which they may be included in investor portfolios. It is intended to serve as an investor's quick guide to hedge fund investing.

Keywords: hedge funds, primer, investing

JEL Classification: G24

Suggested Citation

Jain, Sameer, What are Hedge Funds? (March 1, 2011). UBS Alternative Investments, 7 January 2011. Available at SSRN: or

Sameer Jain (Contact Author)

Active Allocator Inc. ( email )

NJ 07310
United States

Massachusetts Institute of Technology (MIT) ( email )

77 Massachusetts Avenue
50 Memorial Drive
Cambridge, MA 02139-4307
United States

Harvard University ( email )

1875 Cambridge Street
Cambridge, MA 02138
United States

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