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Fund of Funds Investing: A Roadmap to Portfolio Diversification
book

Fund of Funds Investing: A Roadmap to Portfolio Diversification

by Daniel A. Strachman, Richard S. Bookbinder
December 2009
Intermediate to advanced
224 pages
6h 17m
English
Wiley
Content preview from Fund of Funds Investing: A Roadmap to Portfolio Diversification

Glossary

absolute-return fund

An absolute-return fund attempts to perform positively for investors regardless of general direction or market conditions by investing in a range of long and short positions with low correlation to the markets. An absolute-return fund measures the gain or loss of the portfolio as a percentage of capital invested.

ABX

ABX, also known as the asset-backed securities index, is a credit derivative that has asset-backed securities underlying it.

accredited investor

Rule 501 or Regulation D of the Securities Act of 1933 defines an accredited investor as any of the following:

  • A bank, insurance company, registered investment company, business development company, or small business investment company.

  • An employee benefit plan, within the meaning of the Employee Retirement Income Security Act, if a bank, insurance company, or registered investment advisor makes the investment decisions, or if the plan has total assets in excess of $5 million.

  • A charitable organization, corporation, or partnership with assets exceeding $5 million.

  • A director, executive officer, or general partner of the company selling the securities.

  • A business in which all the equity owners are accredited investors.

  • A natural person who has individual net worth, or joint net worth with the person's spouse, that exceeds $1 million at the time of purchase.

  • A natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and ...

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Publisher Resources

ISBN: 9780470258767Purchase book