What is a hedge fund? Specialised



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Agencement
Designing, writing-up and reviewing case study research- an equifinality perspective

Agencement
What is a hedge fund?

  • Specialised

  • Investment vehicle that manages others money

  • Clients are generally more institutional or high net worth – accessible to accredited investors – not allowed to advertise

  • Fees which are higher on gains (20%)

  • They can focus on specific asset classes and geographical areas- e.g. bonds in emerging markets

  • General focus on high-risk high-return investments

  • Theoretically should be making money regardless of market direction

  • FCA regulated in the UK

  • In the US they are less regulated than other vehicles

  • Often clustered outide of Finanical districts

  • Small usually <10 employees

Agencement?



  • Agencement- sociomaterial networks

  • Taking into account social-rechnological actors that make up the economy

  • There is a role that these networks in how we identify

  • In Agencement it is the ways that non-human agents act upon people

Actor


  • Though not physically present “the back office” has a strong influence on all decision and sale or transaction is sent to them in Mumbai or Dublin

  • They don’t make the trades on that site they write down the tarde and is sent off to the investment bank where prime brokers make the trades – this gives the hedge fund a huge advantage as they are able trade through the face of a larger investment bank such as Citi or Goldman

  • Security masters

How does cognition occur



  • Open plan office so information can be passed along easily

  • Screens on the centre so the partner would often stand and talk

  • Trader uses other employees around him to remind him of key data “the price of X” or the amount of inflation

  • The capacity to make trades lies totally within the interactions of people and technical systems (Multiple site cognition)

  • Areas of expertise around him but the trader has final say

  • Conversations begin casually but they bounce of each other until they reach a collective decision – usually the according to traders

  • Silently sifting through screens for hours on end

  • Dissemination of ideas from outside through emails

  • Traders are eager to share ideas as it makes it possible to bring throguh

  • Cognition is often influenced by emotion support for traders is explicit

  • Arbitrage opportunity- spreadsheet is needed to confirm



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