How Hedge Funds Can Use Options to Reduce Risk

Investing in any sort of capacity can entail quite a bit of monetary risk. Hedge funds are no different, even if they are designed to alleviate the risk from high profile investors’ other investments. Just because a hedge fund is supposed to make money when other markets might be losing money does not mean that they will always perform at a high capacity for profits. Hedge funds lose money, too, at times. There are many things that hedge fund managers do to help minimize the risk that their funds take on. One such move can be the use of options….