i. Equity Market Neutral: Using statistical techniques and valuation models to capture fundamental inefficiency and drive alpha in equity markets.
ii. Macro: Massive changes in government policies which could impact interest rates or bring about major economic upheaval, in turn affecting currency, stock, and bond markets help in driving stock prices.
iii. Distressed Securities: Buying equity, debt, or trade claims (invoices) at deep discounts of companies which are facing bankruptcy or restructuring, to capture returns from pricing inefficiencies due to improved cash flow or value post restructuring.
iv. Hedge equities: Global or country-specific, Long or short investments in equity and their derivatives, hedging against downturns in equity markets by shorting overvalued stocks.
v. Income: Focusing on investments in ‘yield or current income’, for eg. Interest or Dividends, rather than only on ‘capital gains’(Gain from rise in price of the asset). It may or may not take on leverage to buy bonds and sometimes fixed income derivatives to profit from principal appreciation and interest income.
vi. Multi-strategy: As the name suggests, various hedge fund strategies are employed simultaneously to realize short- and long-term gains.