What does the snowball fund mean?

Snowball fund is a special product type. This product is linked to options and other products on the basis of fixed income. For example, if a product is linked to an option, then the product will add two barrier prices as trigger conditions, and the product will knock in and out within the two barrier prices to decide whether it can obtain excess returns. The snowball fund analyzes the logic of the fund's fixed investment to make money because the fund fluctuates. A-share bull is short and bear is long, and the holding cost is diluted through long-term investment. Fund, in English, refers to a certain amount of funds set up for a certain purpose.

Fund form

It is still uncertain which is the earliest hedge fund. During the great bull market in the United States in the 1920s, there were countless such investment tools specifically for the rich. The most famous is the Graham-NewmanPartnership Fund founded by BenjaminGraham and JerryNewman.

In 2006, WarrenBuffett declared in a letter to MuseumofAmericanFinance magazine that the Graham-Newmanpartnership Fund in the 1920s was the earliest known hedge fund, but other funds may appear earlier.

The big bull market in the 1990s created a batch of new wealth, and hedge funds blossomed everywhere. Because hedge funds emphasize the income distribution mode with consistent interests and the investment mode of "outperforming the market", traders and investors pay more attention to hedge funds In the next decade, the investment strategies of hedge funds will emerge one after another, including credit arbitrage, junk bonds, fixed-income securities, quantitative investment, multi-strategy investment and so on. In the first decade of 2 1 century, hedge funds swept the world again. In 2008, the total assets held by global hedge funds reached 1.93 trillion US dollars. However, the credit crisis in 2008 hit hedge funds hard, and their value shrank. In addition, the liquidity of some markets has been blocked, and many hedge funds have begun to restrict investors' redemption.