Esponel (es)
Türkçe (tr)
Russian (ru)
한국인 (kr)
Italiano (it)
हिंदी (in)
عربي (ar)
Français (fr)
Deutsch (de)
日本 (jp)
中国人 (cn)
CandleFocus Glossary Editor
Buy-Side: A Deep Dive Into Investment Strategies
The buy-side is an important part of the financial markets and is made up of investing institutions that purchase financial securities for money management purposes. It is the opposite of the sell-side which primarily provides only recommendations and services to facilitate the buying of securities.
Buy-side firms and organizations typically purchase stocks, bonds, and other financial products in order to meet the goals and objectives of their strategies. Among the primary participants in buy-side activities are hedge funds, pension funds, mutual funds, insurers and asset management companies.
Hedge Funds
Hedge funds are one of the most well known types of buy-side institutions. They are private investment funds that are typically restricted to only wealthy investors, such as large banks, wealthy individuals, and institutions. Hedge funds employ a variety of strategies such as long/short equity, market-neutral, and global macro in order to generate alpha or excess returns above a benchmark.
Pension Funds
Pension funds are one of the oldest types of buy-side institutions. Pension funds provide funds for the retirement of individuals who have been employed by a company for a period of time. Pension funds typically invest in a variety of assets such as stocks, bonds, derivatives, and real estate in order to generate returns for their investors.
Mutual Funds
Mutual funds are investment vehicles that pool together money from many individual investors and use that pool of money to purchase a variety of securities. Mutual funds typically have a predetermined investment strategy and holdings. They are required to distribute all profits they receive over the course of the year to their investors.
Insurers and Asset Management Companies
Insurers and asset management companies are two of the more common types of buy-side institutions. Insurers provide insurance coverage to their customers and invest their reserves in a variety of securities in order to generate returns that offset the losses they incur from their insurance-related activities. Asset management companies manage the investments of their clients and typically charge a fee for the services they provide.
The buy-side is a critical part of the investing process and provides many different types of investors with a wide range of investment opportunities. Investors seeking to secure returns for their portfolios should consider the various strategies and institutions available in order to best meet their goals.
The buy-side is an important part of the financial markets and is made up of investing institutions that purchase financial securities for money management purposes. It is the opposite of the sell-side which primarily provides only recommendations and services to facilitate the buying of securities.
Buy-side firms and organizations typically purchase stocks, bonds, and other financial products in order to meet the goals and objectives of their strategies. Among the primary participants in buy-side activities are hedge funds, pension funds, mutual funds, insurers and asset management companies.
Hedge Funds
Hedge funds are one of the most well known types of buy-side institutions. They are private investment funds that are typically restricted to only wealthy investors, such as large banks, wealthy individuals, and institutions. Hedge funds employ a variety of strategies such as long/short equity, market-neutral, and global macro in order to generate alpha or excess returns above a benchmark.
Pension Funds
Pension funds are one of the oldest types of buy-side institutions. Pension funds provide funds for the retirement of individuals who have been employed by a company for a period of time. Pension funds typically invest in a variety of assets such as stocks, bonds, derivatives, and real estate in order to generate returns for their investors.
Mutual Funds
Mutual funds are investment vehicles that pool together money from many individual investors and use that pool of money to purchase a variety of securities. Mutual funds typically have a predetermined investment strategy and holdings. They are required to distribute all profits they receive over the course of the year to their investors.
Insurers and Asset Management Companies
Insurers and asset management companies are two of the more common types of buy-side institutions. Insurers provide insurance coverage to their customers and invest their reserves in a variety of securities in order to generate returns that offset the losses they incur from their insurance-related activities. Asset management companies manage the investments of their clients and typically charge a fee for the services they provide.
The buy-side is a critical part of the investing process and provides many different types of investors with a wide range of investment opportunities. Investors seeking to secure returns for their portfolios should consider the various strategies and institutions available in order to best meet their goals.