The knack is to hedge a position with something that is closely correlated.
To hedge its long position in the XRT, Goldman shorted the individual securities underlying the XRT.
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Alternatively, the trader may be cautiously optimistic on the pharmaceuticals giant, establishing the put spread to hedge a long position in the underlying shares.
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Traders looking to hedge a short position on the networking sector might consider a May 40 call to take advantage of HRS's momentum and bearish sentiment backdrop.
The investor behind the transaction may be implementing the spread to hedge a long position in ADS shares, or may be establishing an outright bearish stance on the stock.
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The investor may be employing the three-way spread to take finance an outright bearish view on the stock, or could be using the trade to hedge a long position in the underlying shares.
There are limitations locally because of the measures and so the market is likely to migrate offshore to hedge its currency position to protect against dollar weakness for portfolio investments, currency speculation, and foreign trade.
The put player may be establishing the spread to hedge a long position in the underlying and protect recent share price gains, or could be outright bearish on the European bank in the expectation that the rally is not here to stay.
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Despite fears of a double-dip recession, industrial goods companies are the biggest overweight position for hedge funds.
Fairholme Capital surfaced as a major holder in early 2011 with 38.5 million shares, a position the hedge fund run by Bruce Berkowitz has increased to 46.5 million, or 22%.
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The investor responsible for the transaction may be taking an outright bearish stance on the stock, or may be using the position to hedge long stock in DNKN through earnings.
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People are taking notice, including Boone Pickens, whose hedge fund recently increased its position in MMR.
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The sector is underweighted in Guy's traditional funds and is an important short position for the hedge fund.
The Tiger Global hedge fund recently disclosed a big position of Facebook stock during the third quarter.
You can buy some of those inverse ETFs as a hedge to kind of neutralize your position to get you through year-end.
According to Hedge Fund Wisdom, a quarterly publication put out by MarketFolly.com, nearly all top hedge fund portfolios have a long position in international stocks of all sizes.
As Martoma allegedly got sneak peeks at drug data, he first recommended that the hedge fund build up a massive position in Elan and Wyeth stock, and then caused the fund to shed those shares after getting a secret look at the unexpectedly bad results of a clinical drug trial.
Miller also defrauded another broker-dealer into taking on a significant short position in Apple stock to hedge against the large purchase of Apple stock he was executing at Rochdale, authorities said.
They are betting against another entity such as a bank or a hedge fund, which is taking the opposite position.
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Activist investor fund Third Point, whose hedge fund manager Daniel Loeb built a major position in distressed Greek government bonds in September, also expressed interest.
But to get into this position, Mr Hague has had to hedge his bets.
To make the case for gold and grains we turned to Renee Haugerud, operator of a smallish hedge fund in New York with a big commodities position, Galtere International Fund, Ltd.
We need systems that make positions transparent in a single database and then tag them to exposures in a mutual fund, bonds or a hedge fund so if you want to see the accounting position you can get it across different types of holdings.
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In a separate criminal complaint, prosecutors allege that Martoma recommended the owner of the unnamed hedge fund sell its Wyeth and Elan holdings, and that the hedge fund owner then instructed a trader to begin selling its position.
Sandler, manager of New York hedge fund Eminence Capital, has built up a 5.6% position in Blockbuster because he thinks there's hope in its operational improvements.
While some analysts have downgraded the stock in recent weeks, David Einhorn, president and manager of hedge fund Greenlight Capital, actually sniffs value and has taken a long position.
Several days ago, billionaire investor George Soros disclosed he had more than doubled his position in gold bullion, making him one of the largest hedge fund holders of gold along with John Paulson and others.
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He made news in early 2013 by taking a position in Herbalife, the nutritional supplements seller, shortly after another prominent hedge fund manager, William Ackman, called the company a pyramid scheme.
Rival hedge fund titans Daniel Loeb and Carl Icahn challenged him with Loeb announcing a long position in Herbalife and Icahn questioning Ackman's investment skills all together in an epic CNBC showdown.
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