Background
Pine Street Capital is a market-neutral hedge fund in the technology field and is facing market risk and has to decide which way to use in order to hedge the risk. It can either use short selling of NASDAQ or options hedging strategy. Each strategy has its own advantage in different economic conditions. As the fund has just gone through a volatile period in NASDAQ’s history, PSC has to choose between two choices.
Choice 1: Continuing to hedge market risk by short selling
Choice 2: Switching to using put option on the index
Hedge Fund VS Mutual Fund
The number of hedge funds increased a lot in the late 19th century. Hedge funds are private group investments that offer equity pooling advantages similar to mutual funds. But for hedge funds, they are not publicly owned, so are less regulated than mutual funds. This advantage gives hedge funds the flexibility they need in investment strategies and risk management that cannot be found in mutual funds and it seems to......

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Title: Pine Street Capital
Approximate Word Count: 750
Approximate Pages: 3 (250 words per double-spaced page)

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