They routinely buy homes as, in effect, a hedge against increases in rents or home prices.
Market participants often buy gold as a hedge or alternative currency in times of dollar weakness, and vice-versa.
In fact, short sellers often buy calls to hedge their positions.
To hedge against a resurgence in inflation, buy gold, buy put options on bonds or take out a mortgage.
You can sell futures, buy puts or sell calls on this market to hedge losses in the value of your home.
Arguably, they are also more secretive, because hedge funds at least buy publicly traded securities (if in complicated ways).
"You can't be certain that this happy coincidence will happen next time, " said Tess Weil, a lawyer at Purrington Moody Weil LLP in New York who represents hedge funds and other "buy-side" clients.
Gilbert plans to buy controlling interest from a group of hedge funds and investors that bought it out of bankruptcy in 2010.
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Another method, now the favorite of hedge funds (as Bernard Condon explains), is to persuade corporations to buy in their own shares, shrinking their equity base and thus their tax bills.
In other words, it can get really expensive for a hedge fund to borrow and sell shares it does not own in anticipation it will buy the shares after they have fallen in price.
Currency mutual funds and hedge funds that deal in forex trading need account managers and professional forex traders to make buy and sell decisions.
In the end, when Wall Street moguls tell their clients to buy or sell, the clients and hedge fund associates have enough market clout to move prices significantly.
During the last quarter ending June 30, Hedge Fund Wisdom reported that Apple was a consensus buy among the 25 elite funds it tracks in each quarterly issue.
Einhorn feared if the Mets knew of his previous interest in the Brewers they would conclude he was just another rich hedge-fund guy looking to buy a new toy, as opposed to being a serious Mets fan.
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Hedge funds which had sold borrowed bonds in the hope that prices would fall were forced to buy them back.
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