Changes

A hedge fund seeks to earn returns based on frequent stock trades that use valuation models to find and exploit undervalued stocks (which can be bought) and overvalued stocks (which can be sold).

A '''hedge fund''' seeks to earn returns based on frequent stock trades that use valuation models to find and exploit undervalued stocks (which can be bought) and overvalued stocks (which can be sold).

Often American or British hedge funds cause unexpected changes in value in small stock exchanges of foreign countries, leading to complaints by local investors.  In one case, the [[Long-Term Capital Management]] firm received favoritism by American government officials to rescue it from financial disaster based on a failure of its hedge fund models.

Often American or British hedge funds cause unexpected changes in value in small stock exchanges of foreign countries, leading to complaints by local investors.  In one case, the [[Long-Term Capital Management]] firm received favoritism by American government officials to rescue it from financial disaster based on a failure of its hedge fund models.