Famous Hedge Fund Manager’s Strategies

Here are some of the wealthiest hedge fund managers and their money making strategies……

George Soros : (Quantum group of funds) –>By buliding huge short position in pounds. Considered as “the man who broke the bank of England” he made $1 billion in one day by short selling $10 billion in pounds on September 16,1992 famously known as “black wednesday”.

Ray Dalio : (Bridgewater Associates) –> his firm utilizes global macro investing style which relis on US GDP, inflation,etc. At the beginning they started as institutional investment advisory service, but then had risk parity approach.

Steve A. Cohen: (SAC Capital Advisers,Point72 Asset Management):–>At SAC, the theory of investing was known as “mosaic theory of investing” which invests based on stock information from reliable sources. At Point72 long/short strategy is used and apart from that this fund also involves in investing in early staged startups and also uses quant trading strategies.

John Paulson : (Paulson & Co.)–>His firm made huge profits during 2007 in subprime mortage market. It uses fundamental analysis in investments which may be like global merger, event arbitrage, long/short,credit strategy and event driven strategy. It provides services to pooled investment vehicles.

David Tepper :(Appaloosa Management)–>This hedge fund manager focuses on undiversified concentrated investment positions. He invests in fixed inclome markets and in public equity. His firm mainly invests in equities and debt of distressed companies, bonds, junk bonds, exchange warrants, options, futures, notes.

Jamie dinan: (York Capital Management)–>His fund focuses on fundamental analysis,Bottom-up approach for its investments. The firm focuses on merger & aquisition transactions, distressed securities and restructuring opportunities and special situation equity investing.

James Simmons: (Renaissance Technologies)–>His firm has employed complex mathematical models to analyze and execute trades, many of them automated. The firm uses computer-based models to predict price changes in easily traded financial instruments. These models are based on analyzing as much data as can be gathered, then looking for non-random movements to make predictions. Some also attribute the firm’s performance to employing financial signal processing techniques such as pattern recognition.

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