Hedge funds that change strategies and types of securities invested and also vary the proportions of assets and invested in particular market sectors according to the fund manager's outlook are called ____________________.

Question

Quizplus · Accepted Answer

Multi strategy funds are known to adapt and switch between different investment strategies depending on market conditions and the fund manager's outlook. This can include changing the types of securities invested in and the proportions of assets in different market sectors. Option A, asset allocation funds, typically have a more static mix of assets based on the investor's risk tolerance and investment goals. Option C, event driven funds, focus on investing in companies experiencing significant corporate events such as mergers, acquisitions, or bankruptcies. Option D, market neutral funds, aim to achieve returns that are not dependent on the direction of the overall market by taking long and short positions on individual securities.

Hedge Funds That Change Strategies and Types of Securities Invested