fraud by companies such as Enron and Tyco in the United States. The most esteemed short-bias fund manager is James Chanos of Kynikos Associates LP. The descriptions of the above management styles only barely scratch the surface of the fascinating complexities associated with the strategies employed by hedge funds in their pursuit of absolute returns for investors. Again, these are only three of a very large number of management styles that exist in the universe of hedge funds. For a better understanding of the strategies employed by different hedge funds under each of the four fund classes, you may wish to do some research on the following management styles:
• Long-Bias
Equity Hedge
• Equity Market-Neutral
• Credit Arbitrage
• Fundamental Growth
• Distressed/Restructuring
• Quantitative Directional
• Merger Arbitrage
• Sector (Energy; Technology; Healthcare)
• Special Situations
• Multi-Strategy
• Multi-Strategy
Global Macro • Active Trading
Relative Value • Fixed Income – Asset Backed
• Commodity (Agriculture; Energy; Metals)
• Fixed Income – Convertible Arbitrage
• Currency (Discretionary; Systematic) • Discretionary Thematic • Systematic Diversified • Multi-Strategy
12 | GSR 152
• Activist
Event Driven
• Fixed Income – Corporate • Fixed Income – Sovereign • Volatility • Multi-Strategy