Question
Why is strategy crowding a material hedge fund risk?
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Answer
Many managers in similar trades can amplify unwinds.
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Question
Why might a hedge fund use a master-feeder structure?
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Answer
To pool assets and achieve economies of scale.
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Question
In merger arbitrage, what position pairing defines the strategy?
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Answer
Long target, short acquirer.
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Question
What is liquidity mismatch in a hedge fund context?
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Answer
Illiquid assets funded by relatively liquid redemption terms.
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