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Hedge Funds - Hedging Strategies
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A wide range of hedging strategies are available to hedge funds. For example:

. Selling short - selling shares without owning them, hoping to buy them back at a future date at a lower price in the expectation that their price will drop.
. Using arbitrage - seeking to exploit pricing inefficiencies between related securities - for example, can be long convertible bonds and short the underlying issuers equity.
. Trading options or derivatives - contracts whose values are based on the performance of any underlying financial asset, index or other investment.
. Investing in anticipation of a specific event - merger transaction, hostile takeover, spin-off, exiting of bankruptcy proceedings, etc.
. Investing in deeply discounted securities - of companies about to enter or exit financial distress or bankruptcy, often below liquidation value.
. Many of the strategies used by hedge funds benefit from being non-correlated to the direction of equity markets.

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Disclaimer: This material and any views expressed herein are provided for informational purposes only and should not be construed as an endorsement or inducement of any investor advisory services or as an offer to sell or the solicitation of an offer to purchase any securities. Before seeking any advisor's services or investing any money, investors must read and examine thoroughly the respective disclosure document, offering memorandum or prospectus. Securities products and services are offered through Brewer Financial Services, LLC (member FINRA, SIPC)