Blog Posts

Investment banking target schools are the college and universities that are commonly “feeders” into top investment banks. Many investment banks recruit heavily at these schools because they’ve tended to provide good talent in the past or because current people working there/key decision-makers went to these schools. Below we have a list of popular investment banking […]

A hedge fund and private equity firm both serve a similar purpose in that they both seek to generate returns on investment. However, there are key differences between the two. Hedge funds typically use more aggressive strategies involving liquid investments relative to private equity firms, which focus on illiquid investments. Hedge funds are typically open-ended […]

A hedge fund and mutual fund are both types of investment vehicles that provide a way for individuals to invest their money. However, they each have different goals, strategies, and management structures which makes them appealing to different types of investors.   Hedge Fund vs. Mutual Fund – Key Takeaways Hedge funds are typically only […]

What Are Accredited Investors? Accredited investors are eligible to participate in certain securities offerings, including private placements, structured products, and private equity, venture capital, or hedge funds that may not be available to the general public. These investments can provide investors with access to higher returns and increased diversification of their portfolios that might not […]

Traded REITs are those you can buy on exchanges, such as the New York Stock Exchange (NYSE) and NASDAQ via standard brokerages. These REITs are traded frequently and their prices can be volatile due to changes in market conditions or industry or company-specific news. Non-traded REITs, on the other hand, are offered through private placement […]

Trading is largely a process of making mistakes and learning from them to get better. Unfortunately, of course, these mistakes can be very costly. As such, trading can be risky. But risky things are not inherently risky if they’re understood and controlled for. For example, flying an airplane is very risky if you don’t know […]

What Is False Diversification? False diversification is the state of having many positions in a portfolio but little actual diversification due to the high level of correlation between positions. Example of False Diversification Let’s say a trader is employing the following book: Long Brazilian Real vs US Dollar Long industrial commodities Long oil Short Treasuries […]

What Is Proxy Trading? Proxy trading is the act of using certain securities or instruments to express a particular view in an inexact way. Examples of Proxy Trading Below are some examples of proxy trading: Energy stocks and oil One example would be buying energy stocks to express a bullish view on oil prices. They […]

What Is Transfer Pricing? Transfer pricing is a method of determining prices for goods and services that are exchanged between related parties, such as international affiliates of a single company or corporate entities within the same group. By setting transfer prices, companies can allocate costs and profits across disparate entities, allowing them to reduce their […]

Volatility is a common feature of a lot of modern theoretical finance. You see it a lot in modern portfolio theory and metrics like the Sharpe ratio. It’s also used a lot in practice. Many investment funds target volatility and express their risk as such. But is volatility important? That’s what we’ll look at in […]