Current Research on the Development of Hedge Funds at Home and Abroad

Abstract

Hedge funds, as a kind of private equity funds, aim to achieve the purpose of hedging with financial derivative products such as futures and options, as well as the operational techniques of short buying and short selling and risk hedging of different stocks associated with them. This thesis analyzes the emergence and development of hedge funds at home and abroad, as well as the hedging strategies and instruments. The history of hedge fund is also explained in terms of the double-layer underlying theory of futures trading, including theories of commodity trading, contract trading, and future claims. Initially, hedge funds were not subject to legal regulation. Because of the rapid development of hedge funds worldwide in recent years, they pose certain risks to national and global financial markets. Besides, the market access mechanism and regulatory model are not mature, so opportunities and risks co-exist in hedge funds.