Generation Alt®: The New Movement in Alternative Investing

Fourteen. Over the Hedge

How can Mother Nature help?

Since its first use in the 14th century, the word hedge has evolved into several different uses. Perhaps the most obvious use is in reference to a row of bushes used as a barrier in a garden, or even a physical fence meant to keep invaders out. Hedge has also become a verb, such as in the common phrases “hedging one’s bets” or “hedging one’s comments.” In whatever way hedging is used, it commonly refers to a sense of defense. This certainly applies to the investing world as well, especially in the use of hedging strategies. Done right, hedging strategies are used to manage risk and still allow ...