Hedge

(redirected from hedgehog)
Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia, Wikipedia.

Hedge

A transaction that reduces the risk of an investment.

Hedge

To reduce the risk of an investment by making an offsetting investment. There are a large number of hedging strategies that one can use. To give an example, one may take a long position on a security and then sell short the same or a similar security. This means that one will profit (or at least avoid a loss) no matter which direction the security's price takes. Hedging may reduce risk, but it is important to note that it also reduces profit potential.

hedge

A security transaction that reduces the risk on an already existing investment position. An example is the purchase of a put option in order to offset at least partially the potential losses from owned stock. Although hedges reduce potential losses, they also tend to reduce potential profits. See also perfect hedge, risk hedge, short hedge, special arbitrage account.
Case Study A hedge that limits potential losses is also likely to limit potential gains. In May 1997 Georgia entrepreneur and billionaire Ted Turner entered into an arrangement whereby Mr. Turner had the right to sell four million of his Time Warner shares to a brokerage firm at a price of $19.815 per share. At the same time the brokerage firm acquired the right to buy the same four million shares at a price of $30.45. This particular hedge, called a collar, established a minimum and maximum value for four million shares of Time Warner owned by Mr. Turner. In other words, the former owner of the Atlanta Braves, Atlanta Hawks, CNN, and superstation WTBS acquired the right to obtain at least $19.815 per share by agreeing to give up any increase in value above $30.45. Time Warner stock subsequently skyrocketed when America Online acquired the firm at a price nearly triple the $30.45 stipulated in the agreement. Thus, the hedge ended up costing Mr. Turner approximately a quarter of a billion dollars. On a positive note, the four million shares represented less than 4% of Mr. Turner's total holdings of Time Warner stock he had acquired when the firm bought his Turner Broadcasting several years earlier.
References in periodicals archive ?
Caroline Fishpool and her children Emily, 13, and Ned, six, with Kim Warren and |Mike Day of the Yorkshire Wildlife Trust at the helping hedgehogs event at Stirley Hill Community Farm, near Castle Hill 011115BSTIRLEY_01 JULIAN
Wild About Gardens Week will also be encouraging people to create 13cm x 13cm hedgehog holes in fences, walls and other barriers to allow these creatures to access different gardens for food and shelter.
The British Hedgehog Preservation Society, which is funding the project, hope it will enable the creatures to recolonise the area.
Surveys of the hedgehog population will also be carried out.
Simon ompson, hedgehog ocer for Warwickshire Wildlife Trust, said: "Something as basic as linking up a series of small isolated green patches with a hole no bigger than the size of a CD is a remarkably powerful and positive action for hedgehog conservation.
An Instagram account set up by the owners of a hedgehog named Biddy in Oregon has nearly 370,000 followers, while National Geographic Magazine put a hedgehog on the cover of its April edition to illustrate a trend of people owning exotic animals.
Using little cages in a shed in her Keresley garden, Lorna launched Hogs' Rest Hedgehog Rescue and can care for up to 40 creatures at once, sometimes staying up through the night to nurse them back to health.
The BHPS has produced a poster highlighting dangers hedgehogs face in our gardens to mark this Hedgehog Awareness Week.
Where they could once survive very happily in an urban area, in the middle of quite a lot of houses, they now often find that they are so hemmed in that they can't thrive," said Fay Vass, chief executive of the British Hedgehog Preservation Society.
Between 2007 and 2008, Dr Yamaguchi and a student from his department conducted a study on the hibernation pattern of the Ethiopian hedgehog, using a captive animal.
Then either with the tunnels, or if people sight a hedgehog, we would love them to report the sighting to us via our Mammal Atlas online form.