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Hedge Fund Strategy And Private Equity

Acornsfinace has invested and generated some amazing compounded annual returns by directly and indirectly participating in the hedge funds. Acornsfinace apply mostly long/short equity strategy and has found great success with it.

Long/Short equity strategy:

A wide variety of both quantitative and fundamental techniques are employed to arrive at an investment decision. We purchase the undervalued stocks and sell the overvalued stocks. We go long and short in competing companies.

Convertible arbitrage:

Convertibles generally are the hybrid securities including a combination of a bond with an equity option. A convertible arbitrage hedge fund typically includes long convertible bonds and short a proportion of the shares into which they convert. Here at Acornsfinace, we take long position on bonds and short positions on common stock or shares.

Capital structure arbitrage:

In this strategy we go long on the sub-ordinate bonds and short on the senior bonds, or long equity and short CDS. When we analyze that a particular company is performing badly, we utilize this strategy. In such cases, the stocks of that company will fall greatly than the bonds. We take advantage of the fact that the stocks will become comparatively much cheaper than the bonds.

We have also some great private equity investments over the years. We also have our investment in financial technology companies that will replace traditional banking using the Internet and automation.

Governing Strategy

Our company comprises businesses into different sectors, so we have a lot to stay on top. To help with that, we have built a team to communicate and report and analyse our different businesses. The team alerts the CEO of the areas of concern and comes up with the probable solutions, so that the governing body and the CEO can take appropriate measures and thus keep this massive conglomerate functioning smoothly. The team also keeps in constant touch with the rating agencies and keeps updated with the investor perspectives. We strive to keep the business strategy and review process as simple as possible. Heads of each business are supposed to provide five-to-ten-year growth model and explain it to our CEO and the governing team in three or four simple metrics—essentially our financial-growth model. The model thus presented will be assessed and tested against the market dynamics and against our competitors to see if those growth aspirations make sense. We then assess the plans of each heads and funds to investments that support the overall growth model of the business is distributed based on this. Our governing body thus ensures that there is clarity of vision and strategic direction. The governing body is responsible for the financial performance of the company by making sure the money is well distributed and invested into different sectors.