How Hedge Funds Can Use Options to Reduce Risk

Investing in any sort of capacity can entail quite a bit of monetary risk. Hedge funds are no different, even if they are designed to alleviate the risk from high profile investors’ other investments. Just because a hedge fund is supposed to make money when other markets might be losing money does not mean that they will always perform at a high capacity for profits. Hedge funds lose money, too, at times.

There are many things that hedge fund managers do to help minimize the risk that their funds take on....