HI, In prastice, would an insurance company invest in a hedge fund? I would be very appreciated if you can answer the following question as well. If yes, could you please suggest the reason for investing in a hedge fund? If possible, can you also tell me the strategy used by the hedge fund? many thanks
Probably not: As institutional investors they will probably be banned from going short on equities, and so will also be banned from investing in funds that short. However, as the course is not UK specific, it is possible that there are regimes out there where it is allowed This is more likely to be an ST5 question than ST2 though
