The phrase "active hedge" is correct and usable in written English.
It can be used in financial contexts to refer to a strategy that actively manages risk by offsetting potential losses in investments.
Example: "The fund manager implemented an active hedge to protect the portfolio from market volatility."
Alternatives: "dynamic hedge" or "proactive hedge".
What this data shows is the beginning of a schism in the hedge fund universe between the traditional active hedge fund managers – traders or investors who scour the markets in search of a clever idea and then bet on it, sometimes using derivatives or other kinds of leverage to magnify the impact of their position – and the quant world.
O'Connor says currency risk hasn't been a major problem yet but adds that his company probably will establish more active hedge mechanisms as international revenue continues to grow.
"That's still a growth opportunity because it allows it to move into active hedge trading space and gives it new technology to move out into that market," Laws says.
With a strong balance sheet and much of its revenue locked in through an active hedging program, Barrick has been the clear favorite of gold investors.
The average realized price dropped to $340 an ounce from $360, still well above prevailing market prices, thanks to an active hedging policy.
HREM techniques are beginning to elucidate the structure of the catalytically active 'edge' sites and to reveal the atomic structure of these edge terminations.
Then each trader is allocated the respective amount x1 or x2 as his initial endowment and each of them undertakes active hedging of his respective position.
"We think there are more investors who might be active in hedge funds if they were able to get better information," said Paul Aaronson, executive managing director for portfolio services at S.& P. and the head of the team developing the index.
SIA has one of the industry's most active fuel-hedging programs (Southwest, again, is in this game); futures-market trades in jet fuel gave SIA an average cost for six months 16% below the spot price.
This is largely thanks to active investors, including hedge funds, who use futures in crafting increasingly complex multi-asset, cross-border trades.
Financial markets are active, and banks, hedge funds and traders will need to make money no matter where the S&P 500 trades.
