Back to course 'BUS614: International Finance'

Topic outline

  • Unit 5: Hedge Funds and Private Equity

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    This unit investigates other non-depository institutions, such as hedge funds and private equity, and the important role they play in international markets. As financial markets become increasingly institutionalized, the role of hedge funds and other non-depository institutions is becoming more dominant.

    Completing this unit should take you approximately 1 hour.

    • Upon successful completion of this unit, you will be able to:

      • evaluate the role that hedge funds play in international financial markets;
      • differentiate between hedge funds, private equity, and venture capital; and
      • differentiate between different types of investment strategies, such as value investing, income investing, growth investing, small-cap investing, and socially responsible investing.

    • 5.1: Hedge Funds

      • book icon
        How Hedge Funds Work Book
        Students must
        Mark as done

        Hedge funds are known as institutional investors. They, along with mutual funds, pension funds, insurance companies, commercial banks, and endowment funds, invest on behalf of other individuals/investors by buying and selling big chunks of debt and equity instruments. Here, you will learn about the history of hedge funds and its key features. What are the different types of hedge funds?

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        Hedge Fund Performance During and After the Financial Crisis Book
        Students must
        Mark as done

        Hedge funds operate using global macro strategies, directional strategies, event-driven strategies, relative-value arbitrage strategies, long/short strategies, and capital structure strategies. As you read, observe how and why fund managers choose one of these strategies to base their investment decisions on. What is the relationship between risk-adjusted performance and investment decisions?

    • 5.2: Private Equity

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        Private Equity and Venture Capital Page
        Students must
        Mark as done

        Private equity firms were an alternative source of financing for companies looking to increase their capital without being subject to the scrutiny of enlisting at a stock exchange. This reference provides a guide to understanding how private equity works. What is the difference between hedge funds and private equities?

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        Strategic Investment Funds Book
        Students must
        Mark as done

        Investment funds deploy different investment strategies that ensure the generation of maximum profit for investors. Among these strategies is one known as Strategic Investment. Here, you will learn more about strategic investment and come to understand how an investment fund may deploy such a strategy. How would you describe the key advantages of strategic investment?

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        Momentum Investment Book
        Students must
        Mark as done

        Along with strategic investment, investment funds may opt for what is referred to as a momentum investment strategy. Here you will understand the key attributes of momentum investing. Can you name the difference between momentum investment and strategic investment?

      • book icon
        Value Investing and Growth Investing Book
        Students must
        Mark as done

        After understanding the difference between momentum investing and strategic investment, investment funds may opt for strategies known as value investing and growth investing. Here you will learn the difference between the two and, as a result, will be able to form a broader picture about the different investment strategies. How do you choose the best investment strategy?

    • Unit 5 Study Resources

      This review video is an excellent way to review what you've learned so far and is presented by one of the professors who created the course.

      • page icon
        Unit 5 Review Video Page

        Watch this as you work through the unit and prepare to take the final exam.

      • url icon
        Study Guide: Unit 5 URL

        We also recommend that you review this Study Guide before taking the Unit 5 Assessment.

    • Unit 5 Assessment

      • quiz icon
        Unit 5 Assessment Quiz
        Students must
        Receive a grade

        Take this assessment to see how well you understood this unit.

        • This assessment does not count towards your grade. It is just for practice!
        • You will see the correct answers when you submit your answers. Use this to help you study for the final exam!
        • You can take this assessment as many times as you want, whenever you want.