Helpful Terms and Definitions

Hedge Fund Specialties:

Absolute Return

Absolute Return funds seek positive returns in all market conditions. Because absolute return funds use a variety of strategies (Long/Short, Commodities, FX etc.), our database typically uses this classification only when the fund’s strategy is self-described as “Absolute Return”

Arbitrage

Arbitrage funds attempt to profit by exploiting price differences of identical or highly similar financial instruments, on different markets. This category includes funds engaging in a wide variety of arbitrage strategies (merger arbitrage, municipal bond arbitrage, volatility arbitrage etc.), excluding convertible arbitrage which is listed separately.

Convertible Arbitrage

Convertible Arbitrage is hedge fund strategy that involves exploiting prices differences between convertible securities and their equivalent equity and derivative components. This strategy primarily involves taking long positions in convertible bonds or warrants, hedged with a short position, typically in the underlying stock. Funds that actively engage in this form of arbitrage are listed in this category.

Emerging Markets

Emerging Markets hedge fund strategies focus on traditional equity and fixed income investments in markets outside of the United States and Western Europe, including South and Central America, most of Asia, as well as Eastern Europe and Africa.

Energy

Energy hedge funds focus their investments in energy companies and energy related securities and commodities.

Equity (Directional)

Equity funds comprise a broad number of funds investing primarily in the US equity markets including long-only funds.

Fixed Income / Credit

This category refers to a wide variety of funds engaged primarily in managing fixed income and credit instruments including Treasuries, foreign and emerging market debt, as well as mortgage backed securities (some overlap with Special Situations) and consumer debt.

Fund of Hedge Funds

Fund of Hedge Funds or “fund of funds” invest in a portfolio of hedge funds run by different managers rather than investing directly in equities, bonds or other securities or derivatives. Because, fund of funds invest with multiple managers the process is referred to as multi-manager investing and they often have lower minimum investment requirements than traditional hedge funds.

Global Equity

Global Equity funds include hedge funds investing globally in the equity and fixed income markets of both developed and emerging markets.

Global Macro

Global Macro funds will invest in a wide range of securities and markets and employ differing strategies based on prevailing conditions. This category may have some overlap with Managed Futures and Multi Strategy.

Long/Short Equity

Long/Short Equity hedge funds(or equity long/short)funds buy equities that are expected to increase in value and sell short equities that are expected to decrease. In our database this strategy has overlap with a variety of other hedge fund strategies. Included in this category are self-described “Equity Long/Short” funds and “Market Neutral” funds.

Managed Futures / Commodities

Managed Futures funds utilize systematic trading in the global FX, interest rate, equity and commodity markets to take advantage of directional movements.

Multi Strategy

Multi Strategy funds use a number of different strategies within the same fund of pooled assets with the intent of exploiting market conditions while providing strategy diversification.

Real Estate

Real Estate hedge funds are focused primarily on buying and selling residential and commercial real estate. Real Estate funds are also involved in the management and development of these assets, while others primarily trade REITs and other real estate securities.

Small Cap

Small Cap funds are primarily invested in micro cap and/or small cap US equities.

Special Situations / Event Driven

Special Situations / Event Driven hedge funds primarily invest in mortgage backed securities and other similar assets at “distressed” prices. However, special situations funds may also engage in direct investments such as hostile takeovers. This category also includes event driven and distressed funds.

Timber / Natural Resources

Natural Resource hedge funds invest in and often manage timber and other properties with natural resources.

Value

Value funds are typically long-only and employ a “value” strategy of buying underpriced securities. These funds are typically longer term investors.

Private Equity Specialties:

Aerospace/Defense

Companies in the aviation field as well as military and defense contractors and suppliers.

BioTech

Companies that produce use biotechnology as the basis for the design or production of their products and services. This category has significant overlap with the Life Sciences and Pharmaceutical categories.

Business Services

Companies providing accounting, payroll, administration, technical and other services to businesses.

Clean Energy

Clean Energy companies produce technologies that minimize the environmental impact of current energy production methods or are involved in producing environmentally friendly products or services through alternative methods.

Clean Tech

Clean Tech companies provide “knowledge-based” products or services that improve productivity, cut energy use, improve energy efficiency, or reduce waste and pollution. There is some overlap with Business Services and Clean Energy.

Consumer Products

Businesses engaged in retail sales to individuals or households and intended for private consumption.

Distressed Assets

Purchasing equity or debt in companies with deteriorating financial situations.

Education

Providers of traditional educational services as well as online schools and credential providers.

Energy

Companies involved in all aspects of the energy markets. There is overlap with Clean Energy.

Financial Services

Companies in the following Financial Services sub-sectors: Banks and other Depository Institutions, Insurance, Financial Technology, Specialty Finance, Broker-Dealers/Trading, and Asset Managers.

Food and Beverage

Companies involved with the manufacture, distribution, or retail of food and beverage products.

Fund of Funds

Private Equity fund of funds construct portfolios by investing in a number of different private equity fund managers with the goal of providing diversification and lower volatility.

Health Care

Companies involved in a wide range of health care related activities including traditional medicine and health and wellness. This category has significant overlap with the Life Sciences, Medical Devices, and Pharmaceutical categories.

Industrials

Significant overlap with Manufacturing.

Life Sciences

The Life Sciences category encompasses companies in the fields of biomedical technologies, life systems technologies, nutraceuticals, cosmeceuticals, food processing, and environmental products. This category has significant overlap with Bio Tech, Health Care, and Pharmaceutical categories.

Manufacturing

Companies that make a huge range of products intended either for wholesale or retail to customers, however manufacturing firms typically do not sell directly to individuals and households. Significant overlap with Industrials.

Media

Companies whose primary lines of business are in advertising, communications, wireless services, and entertainment.

Medical Devices

Companies developing medical instruments and equipment, software, and technologies related to the health care field. This category has significant overlap with the Health Care and Life Sciences categories.

Pharmaceuticals

Companies specifically involved in the development and distribution of health related drugs and pharmaceuticals.

Real Estate

Private Equity Real Estate firms seek to acquire residential and commercial properties, often developing and managing the projects as well.

Services

Companies providing consumer related services.

Sports

Companies providing sports-specific agency, equipment, and technology.

Technology

Companies involved in the development or manufacturing of electronics and computers, semi-conductors, software, and other services. There is significant overlap with Clean Tech and Media categories.

Transportation / Distribution

Companies providing a variety of shipping services for industrial products, consumer goods, and personal and vehicle transport.

Ventures

Funds using venture capital and other non-controlling stakes in addition to controlling purchases.

Other Terms and Definitions:

Assets Under Management

Total discretionary assets managed by the fund. Many large financial institutions manage discretionary funds along with pooled assets in alternative investments. While we try to provide AUM figures for alternative assets, the numbers may sometimes include other managed assets.

Number of Professionals

The number of professional employees, typically excluding pure support staff and non-executive administrative staff. May include employees located in multiple office locations.

Careers Email

The firm’s primary employment email address where available. Resumes and cover letters should be sent to this address. Be sure to check the firm’s website for a careers section or other instructions on how to submit an application.

Primary Email

The firm’s main email address for general inquiries.