Diversified Fund

Diversified Fund

A fund that has invested in many different types of securities in order to hedge against the securities already in the fund. Ideally, this reduces the risk inherent in any one investment, and increases the possibility of making a profit, or at least avoiding a loss. This may also reduce the expected return on the fund, but it depends on the level and type of diversification. There are two main types of diversification that a fund may utilize. Horizontal diversification involves investing in similar investments. Examples include investing in several technology companies or in different types of bonds. Vertical diversification involves investing in very different securities; for example, one may choose to invest in securities traded in different countries, or in both winter clothing and swimsuit companies. Both types of diversification may be as broad or as narrow as the fund's manager chooses. In general, broader diversification equates to less risk and less return.
References in periodicals archive ?
2, 2015 /PRNewswire/ --SkyBridge Capital ("SkyBridge"), a global investment management firm, was named 'Best Diversified Fund of Hedge Funds over 10 years' for one of its offshore funds at the Hedge Funds Review Americas Awards, held in New York City on July 30, 2015.
Legal & General Investment Management (LGIM) is delighted to announce that its Diversified Fund has passed Au1 billion in assets under management, with LGIM now managing a combined Au2.
A diversified fund can change sector weightages depending on the fund manager's research, says Jayesh Gandhi, executive director, Morgan Stanley Investment Management.
The complaint filed in Los Angeles Superior Court claims Tom Kelly, a manager of First California Diversified Fund LLC, used the names of three American Indian tribes to convince people to invest $25,000 a share for an interest in the casino.
Therefore, The Fairholme Fund is exposed to greater individual stock volatility than a diversified fund.
A non-diversified fund, one that may concentrate its assets in fewer holdings than a diversified fund, is more exposed to individual stock volatility than a diversified fund.
The letters come from a company called First California Diversified Fund, which lists a Santa Monica Boulevard address.
19, 2014 /PRNewswire/ -- Cache Private Capital (CPC) CEO Dale Munson announced today Cache Private Capital Diversified Fund (CPCD) has been named to the 2014 Inc.
Mutual funds are made up from a number of stocks or bonds, giving the investor a broadly diversified fund and guarding against the volatility of a particular stock,'' said Vern Kozlen, executive vice president of City National Investments.
The Jensen Quality Growth Fund is non-diversified, meaning that it may concentrate its assets in fewer individual holdings than a diversified fund, and is therefore more exposed to individual stock volatility than a diversified fund.
Turner Medical Sciences Long/Short Fund, managed by Vijay Shankaran, is a diversified fund of long and short investments in health-care companies of all market capitalizations.
Therefore, the Fund is exposed to greater individual stock volatility than a diversified fund.

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