title: John Constantine

text: "Hellblazer" boosted the popularity and image of the occult detective fiction genre and shaped it into its modern form. Many modern examples of the genre such as "Hellboy", "Supernatural", "Grimm", "The Originals", and "The Dresden Files" have been influenced by the character. Many imitators of both the series and its character flourished such as "Criminal Macabre", "Gravel", "Planetary", and others. Its elements and style have been used countless of times in other works and many analogues of the cynical John Constantine have appeared.


title: John Constantine

text: Unlike other comic book magicians, Constantine's portrayal of skills prior to the New 52 onwards did not often use his magical abilities, choosing to primarily relying on his wits, knowledge of the occult, manipulation of opponents and allies, and an extensive list of contacts. Although his skills in spell-casting are described to be of average ability, his key areas of focus includes demonology, demonic summoning, illusions, and divination although he also has some skills in other areas such as necromancy and spiritual communication. When using sorcery, Constantine is armed with the knowledge of many magical spells, rituals, and curses, such as evocation, necromancy, illusions, invisibility, and can even use magic to time travel. He has a wide range of protection magic such as sigils and magic circles that can protect him from both physical and supernatural attacks. Constantine's skills as a sorcerer were increased after the New 52 reboot, adding other magical powers such as teleportation, counter spells, elemental magic, telekinesis, and immobilization. He can use magic to reflect damages done to him onto his enemies. John also carries with him an arsenal of powerful magical artifacts to aid him in battle, such as The House of Mystery, which also serves as his transport to different realms of the universe, and his trademark trench coat that possesses powerful demonic powers.


title: John Constantine

text: John's most signature supernatural ability is synchronicity wave travelling, which is an instinctual supernatural ability for Constantine to make his own luck. This has led John to uncanny luck at games of chance, the ability to avoid and escape harm, meet the right kind of ally to help prevent or stop an apocalyptic event from happening, and reshape the battle he's fighting to his own accord. Constantine is highly resistant to many psychic attacks such as telepathy, possessions, and mind control. He can even use magic to block off omnipresence, seen where he once used sigils to hide himself from the First of the Fallen.


title: John Constantine

text: Aside from sorcery, Constantine excels in manipulation, known to have deceived many of the most powerful beings in the DC Universe, such as The First of the Fallen and The Presence, as well as manipulating Batman and Superman. He is considered by many the world's greatest con man. Constantine is one of a few people knowing all the routes to Heaven, Hell, and the afterlife, which he uses to escape and teleport without the danger of being chased by enemies. In the graphic novel "", he once allowed himself to be killed, but later resurrects himself by exiting the afterlife. Constantine also exhibited considerable mastery in "stage magic skills"—hypnosis, sleight of hand, pick pocketing and escapology. Constantine's skill at unarmed combat varies depending on the writer. Some portray him as a poor physical fighter, others as a capable hand-to-hand combatant. Over time he has won occasional fights using magical weapons, by fighting dirty, or by quick-thinking.


title: John Constantine

text: After tricking the Lords of Hell into curing his lung cancer, he was perpetually in good health and physicality. Constantine's blood is demonically tainted, initially by a blood transfusion from the demon Nergal, and later by sex with a succubus. His blood has been shown to have healing properties, and is noted to have an age-managing effect. It also acted as a defence mechanism when attacked by the King of the Vampires, as it is highly corrosive and poisonous.


title: John Constantine

text: His second meeting with his creation was illustrated in 2001's "Snakes and Ladders", an adaptation by Eddie Campbell of one of Moore's performance art pieces:


title: John Constantine

text: They met a third time in fiction, when Moore was written into issue #120 of "Hellblazer" by then-author Paul Jenkins. Moore is seen sitting in silhouette at the back of a bar as John Constantine (who is on a pub crawl with the reader) raises a drink to him.


title: John Constantine

text: Writers who had their run on the "Hellblazer" series have also admitted meeting the character in real life. A rumour has persisted for many years that the Liverpool occult writer Tom Slemen served as a model for Constantine. Slemen has always denied this. Original "Hellblazer" writer Jamie Delano also claims to have encountered Constantine, during his run on the character, outside the British Museum. Peter Milligan saw Constantine at a party around 2009 and rushed after him, only to find he'd disappeared. Brian Azzarello once saw him in a Chicago bar but avoided him, saying that "the thing about John is, the last thing you'd want to be is his friend."


title: John Constantine

text: The character won the 1986 "Favourite Supporting Character" by Eagle Award, followed by winning it again in the same category a year later. In addition to being ranked third in "Empire" magazine's 50 Greatest Comic Characters and being ranked No. 10 in "Wizard Magazine"s Top 200 Comic Book Characters of All Time, he is also listed in IGN's Top 100 Comic Book Heroes as No. 29, stating that "John Constantine is pretty low on the totem pole as far as DC's magical players go. But through a combination of guile, trickery, and plain old ornery charm, Constantine battles the worst Hell has to offer and lives to tell the tale. Constantine is a byproduct of both the punk rock era and Margaret Thatcher's Britain. He isn't very nice, he drinks and smokes like they're both going out of style, and his friends always seem to pay for his own magical misdeeds. And yet we can't help but love this crusty old magician all the same." In 2013, ComicsAlliance ranked Constantine as #30 on their list of the "50 Sexiest Male Characters in Comics".


title: John Constantine

text: The character also garnered some negative reception, where UGO.com listed both Constantine and Zatanna in UGO's the Dirtiest Comic Book Sex Scenes, where they comment that, "One DC heroine who often finds herself unlucky in love is the backwards magician Zatanna, who can never seem to find a quality dude. One of the most fulfilling relationships she's had to date is with that reprobate John Constantine, who is the very definition of a "love 'em and leave 'em" kind of dude. The pair hooked up a number of times but their respective worldviews were just too different, plus he's straight Vertigo and she's wiping minds in the Justice League. The commute would be hideous." During Brian Azzarello's run on the series, the Ashes & Dust in the City of Angels story arc gained controversy for portraying Constantine in a bisexual relationship, though it wouldn't be the last time Constantine's bisexuality was explored.


title: John Constantine

text: Fandomania.com ranked the film "Constantine" in No. 13 of their Ultimate 20 Comic Book Film Adaptations, stating that Keanu Reeves's performance "was good", although saying it might have been better if "played by the person the character was originally modelled after: Sting of the Police." "TopTenz.net" ranked him No. 5 in Top 10 Comic Book Anti-Heroes, saying that "Just knowing John Constantine is likely to get you killed: during his comic's run just about every member of his supporting cast has either been killed, maimed, mutilated, tortured and coerced into making deals with fiends from the Pit. And yet Constantine goes on, a supernatural warrior willing to pay almost any price to keep the darkest evil at bay. In recent times Constantine has got rid of the guilt and self-loathing plaguing him by magically giving it the physical form of a baby and throwing it off a cliff. What a magnificent bastard..."


title: John Constantine

text: Sonia Harris from "Comics Should Be Good" praised "Hellblazer", saying that "watching John delve into his past in order to exorcise his (and the worlds) literal and metaphorical demons is a delight. Simon Bisley does an incredible job of visually contrasting the pretty young version of Constantine with the imposing man he has become. Time and misadventure have scarred and hardened John, and the man he has become has the strength and will to transform his environment by channelling the anger that pained him so much as a young, fresh-faced, suicidal punk kid."


title: John Constantine

text: Constantine ranked 30th on ComicsAlliance's 50 Sexiest Male Characters in Comics list that even though almost all of his relationships end badly, they can't warn others against his wily charms. The character of John Constantine has been analyzed as a stereotypical depiction of a European in fiction.


title: John Constantine

text: Noir fiction author John Shirley is credited with writing three "Hellblazer" novels, including the novelization of the Constantine film. The novel "Hellblazer: War Lord" features Constantine talking about his film counterpart, referring to him as a version of himself from an alternate universe.


title: John Constantine

text: DC Direct created a toyline of Constantine related to his comic book appearance. Another action figure toy line was created by DC Heroclix, which resembles the version of Constantine in "The New 52". Film tie-in merchandise was also released.


title: Hedge fund

text: A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio-construction, and risk management techniques in an attempt to improve performance, such as short selling, leverage, and derivatives. Financial regulators generally restrict hedge fund marketing to institutional investors, high net worth individuals, and accredited investors.


title: Hedge fund

text: Hedge funds are considered alternative investments. Their ability to use leverage and more complex investment techniques distinguishes them from regulated investment funds available to the retail market, commonly known as mutual funds and ETFs. They are also considered distinct from private equity funds and other similar closed-end funds as hedge funds generally invest in relatively liquid assets and are usually open-ended. This means they typically allow investors to invest and withdraw capital periodically based on the fund's net asset value, whereas private-equity funds generally invest in illiquid assets and only return capital after a number of years. However, other than a fund's regulatory status, there are no formal or fixed definitions of fund types, and so there are different views of what can constitute a "hedge fund."


title: Hedge fund

text: Although hedge funds are not subject to the many restrictions applicable to regulated funds, regulations were passed in the United States and Europe following the financial crisis of 2007–2008 with the intention of increasing government oversight of hedge funds and eliminating certain regulatory gaps.


title: Hedge fund

text: Although most modern hedge funds are able to employ a wide variety of financial instruments and risk management techniques, they can be very different from each other with respect to their strategies, risks, volatility and expected return profile. It is common for hedge fund investment strategies to aim to achieve a positive return on investment regardless of whether markets are rising or falling ("absolute return"). Although hedge funds can be considered risky investments, the expected returns of some hedge fund strategies are less volatile than those of retail funds with high exposure to stock markets because of the use of hedging techniques.


title: Hedge fund

text: A hedge fund usually pays its investment manager a management fee (typically, 2% per annum of the net asset value of the fund) and a performance fee (typically, 20% of the increase in the fund's net asset value during a year).


title: Hedge fund

text: Hedge funds have existed for many decades and have become increasingly popular. They have now grown to be a substantial portion of the asset management industry with assets totaling around $3.8 trillion as of 2021. Hedge fund managers can have several billion dollars of assets under management (AUM).


title: Hedge fund

text: The word "hedge", meaning a line of bushes around the perimeter of a field, has long been used as a metaphor for placing limits on risk. Early hedge funds sought to hedge specific investments against general market fluctuations by shorting the market, hence the name. Nowadays, however, many different investment strategies are used, many of which do not "hedge" risk.


title: Hedge fund

text: During the US bull market of the 1920s, there were numerous private investment vehicles available to wealthy investors. Of that period, the best known today is the Graham-Newman Partnership, founded by Benjamin Graham and his long-time business partner Jerry Newman. This was cited by Warren Buffett in a 2006 letter to the Museum of American Finance as an early hedge fund, and based on other comments from Buffett, Janet Tavakoli deems Graham's investment firm the first hedge fund.


title: Hedge fund

text: The sociologist Alfred W. Jones is credited with coining the phrase ""hedged" fund" and is credited with creating the first hedge fund structure in 1949. Jones referred to his fund as being "hedged", a term then commonly used on Wall Street to describe the management of investment risk due to changes in the financial markets.


title: Hedge fund

text: In the 1970s, hedge funds specialized in a single strategy with most fund managers following the long/short equity model. Many hedge funds closed during the recession of 1969–70 and the 1973–1974 stock market crash due to heavy losses. They received renewed attention in the late 1980s.


title: Hedge fund

text: During the 1990s, the number of hedge funds increased significantly with the 1990s stock market rise, the aligned-interest compensation structure ("i.e.", common financial interests), and the promise of above average returns as likely causes. Over the next decade, hedge fund strategies expanded to include credit arbitrage, distressed debt, fixed income, quantitative, and multi-strategy. US institutional investors, such as pension and endowment funds, began allocating greater portions of their portfolios to hedge funds.


title: Hedge fund

text: During the first decade of the 21st century, hedge funds gained popularity worldwide, and, by 2008, the worldwide hedge fund industry held an estimated US$1.93 trillion in assets under management (AUM). However, the financial crisis of 2007–2008 caused many hedge funds to restrict investor withdrawals and their popularity and AUM totals declined. AUM totals rebounded and in April 2011 were estimated at almost $2 trillion. , 61% of worldwide investment in hedge funds came from institutional sources.


title: Hedge fund

text: In June 2011, the hedge fund management firms with the greatest AUM were Bridgewater Associates (US$58.9 billion), Man Group (US$39.2 billion), Paulson & Co. (US$35.1 billion), Brevan Howard (US$31 billion), and Och-Ziff (US$29.4 billion). Bridgewater Associates had $70 billion in assets under management . At the end of that year, the 241 largest hedge fund firms in the United States collectively held $1.335 trillion. In April 2012, the hedge fund industry reached a record high of US$2.13 trillion total assets under management. In the middle of the 2010s, the hedge fund industry experienced a general decline in the "old guard" fund managers. Dan Loeb called it a "hedge fund killing field" due to the classic long/short falling out of favor because of unprecedented easing by central banks. The US stock market correlation became untenable to short sellers. The hedge fund industry today has reached a state of maturity that is consolidating around the larger, more established firms such as Citadel, Elliot, Millennium, Bridgewater, and others. The rate of new fund start ups is now outpaced by fund closings.


title: Hedge fund

text: In July 2017, hedge funds recorded their eighth consecutive monthly gain in returns with assets under management rising to a record $3.1 trillion.


title: Hedge fund

text: Hedge fund strategies are generally classified among four major categories: global macro, directional, event-driven, and relative value (arbitrage). Strategies within these categories each entail characteristic risk and return profiles. A fund may employ a single strategy or multiple strategies for flexibility, risk management, or diversification. The hedge fund's prospectus, also known as an offering memorandum, offers potential investors information about key aspects of the fund, including the fund's investment strategy, investment type, and leverage limit.


title: Hedge fund

text: The elements contributing to a hedge fund strategy include the hedge fund's approach to the market, the particular instrument use, the market sector the fund specializes in ("e.g.", healthcare), the method used to select investments, and the amount of diversification within the fund. There are a variety of market approaches to different asset classes, including equity, fixed income, commodity, and currency. Instruments used include equities, fixed income, futures, options, and swaps. Strategies can be divided into those in which investments can be selected by managers, known as "discretionary/qualitative," or those in which investments are selected using a computerized system, known as "systematic/quantitative." The amount of diversification within the fund can vary; funds may be multi-strategy, multi-fund, multi-market, multi-manager, or a combination.


title: Hedge fund

text: Sometimes hedge fund strategies are described as "absolute return" and are classified as either "market neutral" or "directional". Market neutral funds have less correlation to overall market performance by "neutralizing" the effect of market swings whereas directional funds utilize trends and inconsistencies in the market and have greater exposure to the market's fluctuations.


title: Hedge fund

text: Hedge funds using a global macro investing strategy take large positions in share, bond, or currency markets in anticipation of global macroeconomic events in order to generate a risk-adjusted return. Global macro fund managers use macroeconomic ("big picture") analysis based on global market events and trends to identify opportunities for investment that would profit from anticipated price movements. While global macro strategies have a large amount of flexibility (due to their ability to use leverage to take large positions in diverse investments in multiple markets), the timing of the implementation of the strategies is important in order to generate attractive, risk-adjusted returns. Global macro is often categorized as a directional investment strategy.


title: Hedge fund

text: Global macro strategies can be divided into discretionary and systematic approaches. Discretionary trading is carried out by investment managers who identify and select investments, whereas systematic trading is based on mathematical models and executed by software with limited human involvement beyond the programming and updating of the software. These strategies can also be divided into trend or counter-trend approaches depending on whether the fund attempts to profit from following market trend (long or short-term) or attempts to anticipate and profit from reversals in trends.


title: Hedge fund

text: Within global macro strategies, there are further sub-strategies including "systematic diversified", in which the fund trades in diversified markets, or sector specialists such as "systematic currency", in which the fund trades in foreign exchange markets or any other sector specialisition. Other sub-strategies include those employed by commodity trading advisors (CTAs), where the fund trades in futures (or options) in commodity markets or in swaps. This is also known as a "managed future fund". CTAs trade in commodities (such as gold) and financial instruments, including stock indices. They also take both long and short positions, allowing them to make profit in both market upswings and downswings. Most global macro managers tends to be a CTA from a regulatory perspective and the main divide is between systematic and discretionary strategies. A classification framework for CTA/Macro Strategies can be found in the reference.


title: Hedge fund

text: Directional investment strategies use market movements, trends, or inconsistencies when picking stocks across a variety of markets. Computer models can be used, or fund managers will identify and select investments. These types of strategies have a greater exposure to the fluctuations of the overall market than do market neutral strategies. Directional hedge fund strategies include US and international long/short equity hedge funds, where long equity positions are hedged with short sales of equities or equity index options.


title: Hedge fund

text: Within directional strategies, there are a number of sub-strategies. "Emerging markets" funds focus on emerging markets such as China and India, whereas "sector funds" specialize in specific areas including technology, healthcare, biotechnology, pharmaceuticals, energy, and basic materials. Funds using a "fundamental growth" strategy invest in companies with more earnings growth than the overall stock market or relevant sector, while funds using a "fundamental value" strategy invest in undervalued companies. Funds that use quantitative and financial signal processing techniques for equity trading are described as using a "quantitative directional" strategy. Funds using a "short bias" strategy take advantage of declining equity prices using short positions.


title: Hedge fund

text: Event-driven strategies concern situations in which the underlying investment opportunity and risk are associated with an event. An event-driven investment strategy finds investment opportunities in corporate transactional events such as consolidations, acquisitions, recapitalizations, bankruptcies, and liquidations. Managers employing such a strategy capitalize on valuation inconsistencies in the market before or after such events, and take a position based on the predicted movement of the security or securities in question. Large institutional investors such as hedge funds are more likely to pursue event-driven investing strategies than traditional equity investors because they have the expertise and resources to analyze corporate transactional events for investment opportunities.


title: Hedge fund

text: Corporate transactional events generally fit into three categories: distressed securities, risk arbitrage, and special situations. Distressed securities include such events as restructurings, recapitalizations, and bankruptcies. A distressed securities investment strategy involves investing in the bonds or loans of companies facing bankruptcy or severe financial distress, when these bonds or loans are being traded at a discount to their value. Hedge fund managers pursuing the distressed debt investment strategy aim to capitalize on depressed bond prices. Hedge funds purchasing distressed debt may prevent those companies from going bankrupt, as such an acquisition deters foreclosure by banks. While event-driven investing, in general, tends to thrive during a bull market, distressed investing works best during a bear market.


title: Hedge fund

text: Risk arbitrage or merger arbitrage includes such events as mergers, acquisitions, liquidations, and hostile takeovers. Risk arbitrage typically involves buying and selling the stocks of two or more merging companies to take advantage of market discrepancies between acquisition price and stock price. The risk element arises from the possibility that the merger or acquisition will not go ahead as planned; hedge fund managers will use research and analysis to determine if the event will take place.


title: Hedge fund

text: Special situations are events that impact the value of a company's stock, including the restructuring of a company or corporate transactions including spin-offs, share buy backs, security issuance/repurchase, asset sales, or other catalyst-oriented situations. To take advantage of special situations the hedge fund manager must identify an upcoming event that will increase or decrease the value of the company's equity and equity-related instruments.


title: Hedge fund

text: Other event-driven strategies include credit arbitrage strategies, which focus on corporate fixed income securities; an activist strategy, where the fund takes large positions in companies and uses the ownership to participate in the management; a strategy based on predicting the final approval of new pharmaceutical drugs; and legal catalyst strategy, which specializes in companies involved in major lawsuits.


title: Hedge fund

text: Relative value arbitrage strategies take advantage of relative discrepancies in price between securities. The price discrepancy can occur due to mispricing of securities compared to related securities, the underlying security or the market overall. Hedge fund managers can use various types of analysis to identify price discrepancies in securities, including mathematical, technical, or fundamental techniques. Relative value is often used as a synonym for market neutral, as strategies in this category typically have very little or no directional market exposure to the market as a whole. Other relative value sub-strategies include:


title: Hedge fund

text: In addition to those strategies within the four main categories, there are several strategies that do not entirely fit into these categories.


title: Hedge fund

text: For an investor who already holds large quantities of equities and bonds, investment in hedge funds may provide diversification and reduce the overall portfolio risk. Managers of hedge funds often aim to produce returns that are relatively uncorrelated with market indices and are consistent with investors' desired level of risk. While hedging can reduce some risks of an investment it usually increases others, such as operational risk and model risk, so overall risk is reduced but cannot be eliminated. According to a report by the Hennessee Group, hedge funds were approximately one-third less volatile than the S&P 500 between 1993 and 2010.


title: Hedge fund

text: Investors in hedge funds are, in most countries, required to be qualified investors who are assumed to be aware of the investment risks, and accept these risks because of the potential returns relative to those risks. Fund managers may employ extensive risk management strategies in order to protect the fund and investors. According to the "Financial Times", "big hedge funds have some of the most sophisticated and exacting risk management practices anywhere in asset management." Hedge fund managers that hold a large number of investment positions for short periods are likely to have a particularly comprehensive risk management system in place, and it has become usual for funds to have independent risk officers who assess and manage risks but are not otherwise involved in trading. A variety of different measurement techniques and models are used to estimate risk according to the fund's leverage, liquidity, and investment strategy. Non-normality of returns, volatility clustering and trends are not always accounted for by conventional risk measurement methodologies and so in addition to value at risk and similar measurements, funds may use integrated measures such as drawdowns.


title: Hedge fund

text: In addition to assessing the market-related risks that may arise from an investment, investors commonly employ operational due diligence to assess the risk that error or fraud at a hedge fund might result in a loss to the investor. Considerations will include the organization and management of operations at the hedge fund manager, whether the investment strategy is likely to be sustainable, and the fund's ability to develop as a company.


title: Hedge fund

text: Since hedge funds are private entities and have few public disclosure requirements, this is sometimes perceived as a lack of transparency. Another common perception of hedge funds is that their managers are not subject to as much regulatory oversight and/or registration requirements as other financial investment managers, and more prone to manager-specific idiosyncratic risks such as style drifts, faulty operations, or fraud. New regulations introduced in the US and the EU as of 2010 required hedge fund managers to report more information, leading to greater transparency. In addition, investors, particularly institutional investors, are encouraging further developments in hedge fund risk management, both through internal practices and external regulatory requirements. The increasing influence of institutional investors has led to greater transparency: hedge funds increasingly provide information to investors including valuation methodology, positions, and leverage exposure.


title: Hedge fund

text: Hedge funds share many of the same types of risk as other investment classes, including liquidity risk and manager risk. Liquidity refers to the degree to which an asset can be bought and sold or converted to cash; similar to private-equity funds, hedge funds employ a lock-up period during which an investor cannot remove money. Manager risk refers to those risks which arise from the management of funds. As well as specific risks such as style drift, which refers to a fund manager "drifting" away from an area of specific expertise, manager risk factors include valuation risk, capacity risk, concentration risk, and leverage risk. Valuation risk refers to the concern that the net asset value (NAV) of investments may be inaccurate; capacity risk can arise from placing too much money into one particular strategy, which may lead to fund performance deterioration; and concentration risk may arise if a fund has too much exposure to a particular investment, sector, trading strategy, or group of correlated funds. These risks may be managed through defined controls over conflict of interest, restrictions on allocation of funds, and set exposure limits for strategies.


title: Hedge fund

text: Many investment funds use leverage, the practice of borrowing money, trading on margin, or using derivatives to obtain market exposure in excess of that provided by investors' capital. Although leverage can increase potential returns, the opportunity for larger gains is weighed against the possibility of greater losses. Hedge funds employing leverage are likely to engage in extensive risk management practices. In comparison with investment banks, hedge fund leverage is relatively low; according to a National Bureau of Economic Research working paper, the average leverage for investment banks is 14.2, compared to between 1.5 and 2.5 for hedge funds.


title: Hedge fund

text: Some types of funds, including hedge funds, are perceived as having a greater appetite for risk, with the intention of maximizing returns, subject to the risk tolerance of investors and the fund manager. Managers will have an additional incentive to increase risk oversight when their own capital is invested in the fund.


title: Hedge fund

text: Hedge fund management firms typically charge their funds both a management fee and a performance fee.


title: Hedge fund

text: Management fees are calculated as a percentage of the fund's net asset value and typically range from 1% to 4% per annum, with 2% being standard. They are usually expressed as an annual percentage, but calculated and paid monthly or quarterly. Management fees for hedge funds are designed to cover the operating costs of the manager, whereas the performance fee provides the manager's profits. However, due to economies of scale the management fee from larger funds can generate a significant part of a manager's profits, and as a result some fees have been criticized by some public pension funds, such as CalPERS, for being too high.


title: Hedge fund

text: The performance fee is typically 20% of the fund's profits during any year, though performance fees range between 10% and 50%. Performance fees are intended to provide an incentive for a manager to generate profits. Performance fees have been criticized by Warren Buffett, who believes that because hedge funds share only the profits and not the losses, such fees create an incentive for high-risk investment management. Performance fee rates have fallen since the start of the credit crunch.


title: Hedge fund

text: Almost all hedge fund performance fees include a "high water mark" (or "loss carryforward provision"), which means that the performance fee only applies to net profits ("i.e.", profits after losses in previous years have been recovered). This prevents managers from receiving fees for volatile performance, though a manager will sometimes close a fund that has suffered serious losses and start a new fund, rather than attempt to recover the losses over a number of years without a performance fee.


title: Hedge fund

text: Some performance fees include a "hurdle", so that a fee is only paid on the fund's performance in excess of a benchmark rate ("e.g.", LIBOR) or a fixed percentage. The hurdle is usually tied to a benchmark rate such as Libor or the one-year Treasury bill rate plus a spread. A "soft" hurdle means the performance fee is calculated on all the fund's returns if the hurdle rate is cleared. A "hard" hurdle is calculated only on returns above the hurdle rate. By example the manager sets a hurdle rate equal to 5%, and the fund return 15%, incentive fees would only apply to the 10% above the hurdle rate. A hurdle is intended to ensure that a manager is only rewarded if the fund generates returns in excess of the returns that the investor would have received if they had invested their money elsewhere.


title: Hedge fund

text: Some hedge funds charge a redemption fee (or withdrawal fee) for early withdrawals during a specified period of time (typically a year), or when withdrawals exceed a predetermined percentage of the original investment. The purpose of the fee is to discourage short-term investing, reduce turnover, and deter withdrawals after periods of poor performance. Unlike management fees and performance fees, redemption fees are usually kept by the fund and redistributed to all investors.


title: Hedge fund

text: Hedge fund management firms are often owned by their portfolio managers, who are therefore entitled to any profits that the business makes. As management fees are intended to cover the firm's operating costs, performance fees (and any excess management fees) are generally distributed to the firm's owners as profits. Funds do not tend to report compensation, and so published lists of the amounts earned by top managers tend to be estimates based on factors such as the fees charged by their funds and the capital they are thought to have invested in them. Many managers have accumulated large stakes in their own funds and so top hedge fund managers can earn extraordinary amounts of money, perhaps up to $4 billion in a good year.


title: Hedge fund

text: Earnings at the very top are higher than in any other sector of the financial industry, and collectively the top 25 hedge fund managers regularly earn more than all 500 of the chief executives in the S&P 500. Most hedge fund managers are remunerated much less, however, and if performance fees are not earned then small managers at least are unlikely to be paid significant amounts.


title: Hedge fund

text: In 2011, the top manager earned $3 billion, the tenth earned $210 million, and the 30th earned $80 million. In 2011, the average earnings for the 25 highest-compensated hedge fund managers in the United States was $576 million while the mean total compensation for all hedge fund investment professionals was $690,786 and the median was $312,329. The same figures for hedge fund CEOs were $1,037,151 and $600,000, and for chief investment officers were $1,039,974 and $300,000, respectively.


title: Hedge fund

text: Of the 1,226 people on the "Forbes" World's Billionaires List for 2012, 36 of the financiers listed "derived significant chunks" of their wealth from hedge fund management. Among the richest 1,000 people in the United Kingdom, 54 were hedge fund managers, according to the "Sunday Times" Rich List for 2012.


title: Hedge fund

text: A porfolio manager risks losing his past compensation if he engages in insider trading. In "Morgan Stanley v. Skowron", 989 F. Supp. 2d 356 (S.D.N.Y. 2013), applying New York's faithless servant doctrine, the court held that a hedge fund's portfolio manager engaging in insider trading in violation of his company's code of conduct, which also required him to report his misconduct, must repay his employer the full $31 million his employer paid him as compensation during his period of faithlessness. The court called the insider trading the "ultimate abuse of a portfolio manager's position." The judge also wrote: "In addition to exposing Morgan Stanley to government investigations and direct financial losses, Skowron's behavior damaged the firm's reputation, a valuable corporate asset."


title: Hedge fund

text: A hedge fund is an investment vehicle that is most often structured as an offshore corporation, limited partnership, or limited liability company. The fund is managed by an investment manager in the form of an organization or company that is legally and financially distinct from the hedge fund and its portfolio of assets. Many investment managers utilize service providers for operational support. Service providers include prime brokers, banks, administrators, distributors, and accounting firms.


title: Hedge fund

text: Prime brokers clear trades and provide leverage and short-term financing. They are usually divisions of large investment banks. The prime broker acts as a counterparty to derivative contracts, and lends securities for particular investment strategies, such as long/short equities and convertible bond arbitrage. It can provide custodial services for the fund's assets, and trade execution and clearing services for the hedge fund manager.


title: Hedge fund

text: Hedge fund administrators are typically responsible for valuation services, and often operations, and accounting.


title: Hedge fund

text: Calculation of the net asset value ("NAV") by the administrator, including the pricing of securities at current market value and calculation of the fund's income and expense accruals, is a core administrator task, because it is the price at which investors buy and sell shares in the fund. The accurate and timely calculation of NAV by the administrator is vital. The case of "Anwar v. Fairfield Greenwich" (SDNY 2015) is the major case relating to fund administrator liability for failure to handle its NAV-related obligations properly. There, the hedge fund administrator and other defendants settled in 2016 by paying the "Anwar" investor plaintiffs $235 million.


title: Hedge fund

text: Administrator back office support allows fund managers to concentrate on trades. Administrators also process subscriptions and redemptions and perform various shareholder services. Hedge funds in the United States are not required to appoint an administrator and all of these functions can be performed by an investment manager. A number of conflict of interest situations may arise in this arrangement, particularly in the calculation of a fund's net asset value. Most funds employ external auditors, thereby arguably offering a greater degree of transparency.


title: Hedge fund

text: An auditor is an independent accounting firm used to perform a complete audit the fund's financial statements. The year-end audit is performed in accordance with the standard accounting practices enforced within the country in which the fund it established, typically US GAAP or the International Financial Reporting Standards (IFRS). The auditor may verify the fund's NAV and assets under management (AUM). Some auditors only provide "NAV lite" services, meaning that the valuation is based on prices received from the manager rather than an independent assessment.


title: Hedge fund

text: A distributor is an underwriter, broker, dealer, or other person who participates in the distribution of securities. The distributor is also responsible for marketing the fund to potential investors. Many hedge funds do not have distributors, and in such cases the investment manager will be responsible for distribution of securities and marketing, though many funds also use placement agents and broker-dealers for distribution.


title: Hedge fund

text: The legal structure of a specific hedge fund, in particular its domicile and the type of legal entity in use, is usually determined by the tax expectations of the fund's investors. Regulatory considerations will also play a role. Many hedge funds are established in offshore financial centers to avoid adverse tax consequences for its foreign and tax-exempt investors. Offshore funds that invest in the US typically pay withholding taxes on certain types of investment income, but not US capital gains tax. However, the fund's investors are subject to tax in their own jurisdictions on any increase in the value of their investments. This tax treatment promotes cross-border investments by limiting the potential for multiple jurisdictions to layer taxes on investors.


title: Hedge fund

text: US tax-exempt investors (such as pension plans and endowments) invest primarily in offshore hedge funds to preserve their tax exempt status and avoid unrelated business taxable income. The investment manager, usually based in a major financial center, pays tax on its management fees per the tax laws of the state and country where it is located. In 2011, half of the existing hedge funds were registered offshore and half onshore. The Cayman Islands was the leading location for offshore funds, accounting for 34% of the total number of global hedge funds. The US had 24%, Luxembourg 10%, Ireland 7%, the British Virgin Islands 6%, and Bermuda had 3%.


title: Hedge fund

text: Hedge funds take advantage of a tax loopole called carried interest to get around paying too much in taxes by fancy legalistic maneouvres on their part.


title: Hedge fund

text: The US Senate Permanent Subcommittee on Investigations chaired by Carl Levin issued a 2014 report that found that from 1998 and 2013, hedge funds avoided billions of dollars in taxes by using basket options. The Internal Revenue Service began investigating Renaissance Technologies in 2009, and Levin criticized the IRS for taking six years to investigate the company. Using basket options Renaissance avoided "more than $6 billion in taxes over more than a decade".


title: Hedge fund

text: A dozen other hedge funds along with Renaissance Technologies used Deutsche Bank's and Barclays' basket options. Renaissance argued that basket options were "extremely important because they gave the hedge fund the ability to increase its returns by borrowing more and to protect against model and programming failures". In July 2015, the United States Internal Revenue claimed hedge funds used basket options "to bypass taxes on short-term trades". These basket options will now be labeled as listed transactions that must be declared on tax returns, and a failure to do would result in a penalty.


title: Hedge fund

text: In contrast to the funds themselves, investment managers are primarily located onshore. The United States remains the largest center of investment with US-based funds managing around 70% of global assets at the end of 2011. As of April 2012, there were approximately 3,990 investment advisers managing one or more private hedge funds registered with the Securities and Exchange Commission. New York City and the Gold Coast area of Connecticut are the leading locations for US hedge fund managers.


title: Hedge fund

text: London was Europe's leading center for hedge fund managers, but since the Brexit referendum some formerly London-based hedge funds have relocated to other European financial centers such as Frankfurt, Luxembourg, Paris, and Dublin, while some other hedge funds have moved their European head offices back to New York City. Before Brexit, according to EuroHedge data, around 800 funds located in the UK had managed 85% of European-based hedge fund assets in 2011. Interest in hedge funds in Asia has increased significantly since 2003, especially in Japan, Hong Kong, and Singapore. After Brexit, Europe and the US remain the leading locations for the management of Asian hedge fund assets.


title: Hedge fund

text: Hedge fund legal structures vary depending on location and the investor(s). US hedge funds aimed at US-based, taxable investors are generally structured as limited partnerships or limited liability companies. Limited partnerships and other flow-through taxation structures assure that investors in hedge funds are not subject to both entity-level and personal-level taxation. A hedge fund structured as a limited partnership must have a general partner. The general partner may be an individual or a corporation. The general partner serves as the manager of the limited partnership, and has unlimited liability. The limited partners serve as the fund's investors, and have no responsibility for management or investment decisions. Their liability is limited to the amount of money they invest for partnership interests. As an alternative to a limited partnership arrangement, U.S. domestic hedge funds may be structured as limited liability companies, with members acting as corporate shareholders and enjoying protection from individual liability.


title: Hedge fund

text: By contrast, offshore corporate funds are usually used for non-US investors, and when they are domiciled in an applicable offshore tax haven, no entity-level tax is imposed. Many managers of offshore funds permit the participation of tax-exempt US investors, such as pensions funds, institutional endowments, and charitable trusts. As an alternative legal structure, offshore funds may be formed as an open-ended unit trust using an unincorporated mutual fund structure. Japanese investors prefer to invest in unit trusts, such as those available in the Cayman Islands.


title: Hedge fund

text: The investment manager who organizes the hedge fund may retain an interest in the fund, either as the general partner of a limited partnership or as the holder of "founder shares" in a corporate fund. For offshore funds structured as corporate entities, the fund may appoint a board of directors. The board's primary role is to provide a layer of oversight while representing the interests of the shareholders. However, in practice board members may lack sufficient expertise to be effective in performing those duties. The board may include both affiliated directors who are employees of the fund and independent directors whose relationship to the fund is limited.


title: Hedge fund

text: A side pocket is a mechanism whereby a fund compartmentalizes assets that are relatively illiquid or difficult to value reliably. When an investment is side-pocketed, its value is calculated separately from the value of the fund's main portfolio. Because side pockets are used to hold illiquid investments, investors do not have the standard redemption rights with respect to the side pocket investment that they do with respect to the fund's main portfolio. Profits or losses from the investment are allocated on a "pro rata" basis only to those who are investors at the time the investment is placed into the side pocket and are not shared with new investors. Funds typically carry side pocket assets "at cost" for purposes of calculating management fees and reporting net asset values. This allows fund managers to avoid attempting a valuation of the underlying investments, which may not always have a readily available market value.


title: Hedge fund

text: Side pockets were widely used by hedge funds during the financial crisis of 2007–2008 amidst a flood of withdrawal requests. Side pockets allowed fund managers to lay away illiquid securities until market liquidity improved, a move that could reduce losses. However, as the practice restricts investors' ability to redeem their investments it is often unpopular and many have alleged that it has been abused or applied unfairly. The SEC also has expressed concern about aggressive use of side pockets and has sanctioned certain fund managers for inappropriate use of them.


title: Hedge fund

text: Hedge funds must abide by the national, federal, and state regulatory laws in their respective locations. The U.S. regulations and restrictions that apply to hedge funds differ from those that apply to its mutual funds. Mutual funds, unlike hedge funds and other private funds, are subject to the Investment Company Act of 1940, which is a highly detailed and extensive regulatory regime. According to a report by the International Organization of Securities Commissions, the most common form of regulation pertains to restrictions on financial advisers and hedge fund managers in an effort to minimize client fraud. On the other hand, U.S. hedge funds are exempt from many of the standard registration and reporting requirements because they only accept accredited investors. In 2010, regulations were enacted in the US and European Union which introduced additional hedge fund reporting requirements. These included the U.S.'s Dodd-Frank Wall Street Reform Act and European Alternative Investment Fund Managers Directive.


title: Hedge fund

text: In 2007, in an effort to engage in self-regulation, 14 leading hedge fund managers developed a voluntary set of international standards in best practice and known as the "Hedge Fund Standards" they were designed to create a "framework of transparency, integrity and good governance" in the hedge fund industry. The Hedge Fund Standards Board was set up to prompt and maintain these standards going forward, and by 2016 it had approximately 200 hedge fund managers and institutional investors with a value of US$3tn investment endorsing the standards. The Managed Funds Association is a US-based trade association, while the Alternative Investment Management Association is the primarily European counterpart.


title: Hedge fund

text: Hedge funds within the US are subject to regulatory, reporting, and record-keeping requirements. Many hedge funds also fall under the jurisdiction of the Commodity Futures Trading Commission, and are subject to rules and provisions of the 1922 Commodity Exchange Act, which prohibits fraud and manipulation. The Securities Act of 1933 required companies to file a registration statement with the SEC to comply with its private placement rules before offering their securities to the public, and most traditional hedge funds in the United States are offered effectively as private placement offerings. The Securities Exchange Act of 1934 required a fund with more than 499 investors to register with the SEC. The Investment Advisers Act of 1940 contained anti-fraud provisions that regulated hedge fund managers and advisers, created limits for the number and types of investors, and prohibited public offerings. The Act also exempted hedge funds from mandatory registration with the SEC when selling to accredited investors with a minimum of US$5 million in investment assets. Companies and institutional investors with at least US$25 million in investment assets also qualified.


title: Hedge fund

text: In December 2004, the SEC began requiring hedge fund advisers, managing more than US$25 million and with more than 14 investors, to register with the SEC under the Investment Advisers Act. The SEC stated that it was adopting a "risk-based approach" to monitoring hedge funds as part of its evolving regulatory regime for the burgeoning industry. The new rule was controversial, with two Commissioners dissenting, and was later challenged in court by a hedge fund manager. In June 2006, the U.S. Court of Appeals for the District of Columbia overturned the rule and sent it back to the agency to be reviewed. In response to the court decision, in 2007 the SEC adopted Rule 206(4)-8, which unlike the earlier-challenged rule, "does not impose additional filing, reporting or disclosure obligations" but does potentially increase "the risk of enforcement action" for negligent or fraudulent activity. Hedge fund managers with at least US$100 million in assets under management are required to file publicly quarterly reports disclosing ownership of registered equity securities and are subject to public disclosure if they own more than 5% of the class of any registered equity security. Registered advisers must report their business practices and disciplinary history to the SEC and to their investors. They are required to have written compliance policies, a chief compliance officer, and their records and practices may be examined by the SEC.


title: Hedge fund

text: The U.S.'s Dodd-Frank Wall Street Reform Act was passed in July 2010 and requires SEC registration of advisers who manage private funds with more than US$150 million in assets. Registered managers must file Form ADV with the SEC, as well as information regarding their assets under management and trading positions. Previously, advisers with fewer than 15 clients were exempt, although many hedge fund advisers voluntarily registered with the SEC to satisfy institutional investors. Under Dodd-Frank, investment advisers with less than US$100 million in assets under management became subject to state regulation. This increased the number of hedge funds under state supervision. Overseas advisers who managed more than US$25 million were also required to register with the SEC. The Act requires hedge funds to provide information about their trades and portfolios to regulators including the newly created Financial Stability Oversight Council. In this regard, most hedge funds and other private funds, including private-equity funds, must file Form PF with the SEC, which is an extensive reporting form with substantial data on the funds' activities and positions. Under the "Volcker Rule," regulators are also required to implement regulations for banks, their affiliates, and holding companies to limit their relationships with hedge funds and to prohibit these organizations from proprietary trading, and to limit their investment in, and sponsorship of, hedge funds.


title: Hedge fund

text: Within the European Union (EU), hedge funds are primarily regulated through their managers. In the United Kingdom, where 80% of Europe's hedge funds are based, hedge fund managers are required to be authorised and regulated by the Financial Conduct Authority (FCA). Each country has its own specific restrictions on hedge fund activities, including controls on use of derivatives in Portugal, and limits on leverage in France.


title: Hedge fund

text: In the EU, managers are subject to the EU's Directive on Alternative Investment Fund Managers (AIFMD). According to the EU, the aim of the directive is to provide greater monitoring and control of alternative investment funds. AIFMD requires all EU hedge fund managers to register with national regulatory authorities and to disclose more information, on a more frequent basis. It also directs hedge fund managers to hold larger amounts of capital. AIFMD also introduced a "passport" for hedge funds authorised in one EU country to operate throughout the EU. The scope of AIFMD is broad and encompasses managers located within the EU as well as non-EU managers that market their funds to European investors. An aspect of AIFMD which challenges established practices in the hedge funds sector is the potential restriction of remuneration through bonus deferrals and clawback provisions.


title: Hedge fund

text: Some hedge funds are established in offshore centres, such as the Cayman Islands, Dublin, Luxembourg, Singapore the British Virgin Islands, and Bermuda, which have different regulations concerning non-accredited investors, client confidentiality, and fund manager independence.


title: Hedge fund

text: In South Africa, investment fund managers must be approved by, and register with, the Financial Services Board (FSB).


title: Hedge fund

text: Performance statistics for individual hedge funds are difficult to obtain, as the funds have historically not been required to report their performance to a central repository, and restrictions against public offerings and advertisement have led many managers to refuse to provide performance information publicly. However, summaries of individual hedge fund performance are occasionally available in industry journals and databases.


title: Hedge fund

text: One estimate is that the average hedge fund returned 11.4% per year, representing a 6.7% return above overall market performance before fees, based on performance data from 8,400 hedge funds. Another estimate is that between January 2000 and December 2009 hedge funds outperformed other investments and were substantially less volatile, with stocks falling an average of 2.62% per year over the decade and hedge funds rising an average of 6.54% per year; this was an unusually volatile period with both the 2001-2002 dot-com bubble and a recession beginning mid 2007. However, more recent data show that hedge fund performance declined and underperformed the market from about 2009 to 2016.


title: Hedge fund

text: Hedge funds performance is measured by comparing their returns to an estimate of their risk. Common measures are the Sharpe ratio, Treynor measure and Jensen's alpha. These measures work best when returns follow normal distributions without autocorrelation, and these assumptions are often not met in practice.


title: Hedge fund

text: New performance measures have been introduced that attempt to address some of theoretical concerns with traditional indicators, including: modified Sharpe ratios; the Omega ratio introduced by Keating and Shadwick in 2002; Alternative Investments Risk Adjusted Performance (AIRAP) published by Sharma in 2004; and Kappa developed by Kaplan and Knowles in 2004.


title: Hedge fund

text: There is a debate over whether alpha (the manager's skill element in performance) has been diluted by the expansion of the hedge fund industry. Two reasons are given. First, the increase in traded volume may have been reducing the market anomalies that are a source of hedge fund performance. Second, the remuneration model is attracting more managers, which may dilute the talent available in the industry.


title: Hedge fund

text: Indices play a central and unambiguous role in traditional asset markets, where they are widely accepted as representative of their underlying portfolios. Equity and debt index fund products provide investable access to most developed markets in these asset classes.


title: Hedge fund

text: Hedge fund indices are more problematic. The typical hedge fund is not traded on exchange, will accept investments only at the discretion of the manager, and does not have an obligation to publish returns. Despite these challenges, Non-investable, Investable, and Clone indices have been developed.


title: Hedge fund

text: Non-investable indices are indicative in nature and aim to represent the performance of some database of hedge funds using some measure such as mean, median, or weighted mean from a hedge fund database. The databases have diverse selection criteria and methods of construction, and no single database captures all funds. This leads to significant differences in reported performance between different indices.


title: Hedge fund

text: Although they aim to be representative, non-investable indices suffer from a lengthy and largely unavoidable list of biases. Funds' participation in a database is voluntary, leading to self-selection bias because those funds that choose to report may not be typical of funds as a whole. For example, some do not report because of poor results or because they have already reached their target size and do not wish to raise further money.


title: Hedge fund

text: The short lifetimes of many hedge funds mean that there are many new entrants and many departures each year, which raises the problem of survivorship bias. If we examine only funds that have survived to the present, we will overestimate past returns because many of the worst-performing funds have not survived, and the observed association between fund youth and fund performance suggests that this bias may be substantial.


title: Hedge fund

text: When a fund is added to a database for the first time, all or part of its historical data is recorded ex-post in the database. It is likely that funds only publish their results when they are favorable, so that the average performances displayed by the funds during their incubation period are inflated. This is known as "instant history bias" or "backfill bias".


title: Hedge fund

text: Investable indices are an attempt to reduce these problems by ensuring that the return of the index is available to shareholders. To create an investable index, the index provider selects funds and develops structured products or derivative instruments that deliver the performance of the index. When investors buy these products the index provider makes the investments in the underlying funds, making an investable index similar in some ways to a fund of hedge funds portfolio.


title: Hedge fund

text: To make the index investable, hedge funds must agree to accept investments on the terms given by the constructor. To make the index liquid, these terms must include provisions for redemptions that some managers may consider too onerous to be acceptable. This means that investable indices do not represent the total universe of hedge funds. Most seriously, they under-represent more successful managers, who typically refuse to accept such investment protocols.


title: Hedge fund

text: The most recent addition to the field approaches the problem in a different manner. Instead of reflecting the performance of actual hedge funds, they take a statistical approach to the analysis of historic hedge fund returns and use this to construct a model of how hedge fund returns respond to the movements of various investable financial assets. This model is then used to construct an investable portfolio of those assets. This makes the index investable, and in principle, they can be as representative as the hedge fund database from which they were constructed. However, these clone indices rely on a statistical modelling process. Such indices have too short a history to state whether this approach will be considered successful.


title: Hedge fund

text: In March 2017, HFR – a hedge fund research data and service provider – reported that there were more hedge-fund closures in 2016 than during the 2009 recession. According to the report, several large public pension funds pulled their investments in hedge funds, because the funds’ subpar performance as a group did not merit the high fees they charged.


title: Hedge fund

text: Despite the hedge fund industry topping $3 trillion for the first time ever in 2016, the number of new hedge funds launched fell short of levels before the financial crisis of 2007–2008. There were 729 hedge fund launches in 2016, fewer than the 784 opened in 2009, and dramatically fewer than the 968 launches in 2015.


title: Hedge fund

text: Systemic risk refers to the risk of instability across the entire financial system, as opposed to within a single company. Such risk may arise following a destabilizing event or events affecting a group of financial institutions linked through investment activity. Organizations such as the European Central Bank have charged that hedge funds pose systemic risks to the financial sector, and following the failure of hedge fund Long-Term Capital Management (LTCM) in 1998 there was widespread concern about the potential for systemic risk if a hedge fund failure led to the failure of its counterparties. (As it happens, no financial assistance was provided to LTCM by the US Federal Reserve, so there was no direct cost to US taxpayers, but a large bailout had to be mounted by a number of financial institutions.)


title: Hedge fund

text: However, these claims are widely disputed by the financial industry, who typically regard hedge funds as "small enough to fail", since most are relatively small in terms of the assets they manage and operate with low leverage, thereby limiting the potential harm to the economic system should one of them fail. Formal analysis of hedge fund leverage before and during the financial crisis of 2007–2008 suggests that hedge fund leverage is both fairly modest and counter-cyclical to the market leverage of investment banks and the larger financial sector. Hedge fund leverage decreased prior to the financial crisis, even while the leverage of other financial intermediaries continued to increase. Hedge funds fail regularly, and numerous hedge funds failed during the financial crisis. In testimony to the US House Financial Services Committee in 2009, Ben Bernanke, the Federal Reserve Board Chairman said he "would not think that any hedge fund or private-equity fund would become a systemically critical firm individually".


title: Hedge fund

text: This does leave the possibility that hedge funds collectively might contribute to systemic risk if they exhibit herd or self-coordinating behavior, perhaps because many hedge funds make losses in similar trades. This coupled with the extensive use of leverage could lead to forced liquidations in a crisis.


title: Hedge fund

text: Hedge funds are also closely connected to their prime brokers, typically investment banks, can could contribute to their instability in a crisis, though this works both ways and failing counterparty banks can freeze hedge funds assets, as Lehman brothers did in 2008.


title: Hedge fund

text: An August 2012 survey by the Financial Services Authority concluded that risks were limited and had reduced as a result, "inter alia", of larger margins being required by counterparty banks, but might change rapidly according to market conditions. In stressed market conditions, investors might suddenly withdraw large sums, resulting in forced asset sales. This might cause liquidity and pricing problems if it occurred across a number of funds or in one large highly leveraged fund.


title: Hedge fund

text: Hedge funds are structured to avoid most direct regulation (although their managers may be regulated), and are not required to publicly disclose their investment activities, except to the extent that investors generally are subject to disclosure requirements. This is in contrast to a regulated mutual fund or exchange-traded fund, which will typically have to meet regulatory requirements for disclosure. An investor in a hedge fund usually has direct access to the investment adviser of the fund, and may enjoy more personalized reporting than investors in retail investment funds. This may include detailed discussions of risks assumed and significant positions. However, this high level of disclosure is not available to non-investors, contributing to hedge funds' reputation for secrecy, while some hedge funds have very limited transparency even to investors.


title: Hedge fund

text: Funds may choose to report some information in the interest of recruiting additional investors. Much of the data available in consolidated databases is self-reported and unverified. A study was done on two major databases containing hedge fund data. The study noted that 465 common funds had significant differences in reported information ("e.g.", returns, inception date, net assets value, incentive fee, management fee, investment styles, etc.) and that 5% of return numbers and 5% of NAV numbers were dramatically different. With these limitations, investors have to do their own research, which may cost on the scale of US$50,000 for a fund that is not well-established.


title: Hedge fund

text: A lack of verification of financial documents by investors or by independent auditors has, in some cases, assisted in fraud. In the mid-2000s, Kirk Wright of International Management Associates was accused of mail fraud and other securities violations which allegedly defrauded clients of close to US$180 million. In December 2008, Bernard Madoff was arrested for running a US$50 billion Ponzi scheme that closely resembled a hedge fund and was incorrectly described as one. Several feeder hedge funds, of which the largest was Fairfield Sentry, channeled money to it. Following the Madoff case, the SEC adopted reforms in December 2009 that subjected hedge funds to an audit requirement.


title: Hedge fund

text: The process of matching hedge funds to investors has traditionally been fairly opaque, with investments often driven by personal connections or recommendations of portfolio managers. Many funds disclose their holdings, strategy, and historic performance relative to market indices, giving investors some idea of how their money is being allocated, although individual holdings are often not disclosed. Investors are often drawn to hedge funds by the possibility of realizing significant returns, or hedging against volatility in the market. The complexity and fees associated with hedge funds are causing some to exit the market – CalPERS, the largest pension fund in the US, announced plans to completely divest from hedge funds in 2014. Some services are attempting to improve matching between hedge funds and investors: HedgeZ is designed to allow investors to easily search and sort through funds; iMatchative aims to match investors to funds through algorithms that factor in an investor's goals and behavioral profile, in hopes of helping funds and investors understand the how their perceptions and motivations drive investment decisions.


title: Hedge fund

text: In June 2006, prompted by a letter from Gary J. Aguirre, the U.S. Senate Judiciary Committee began an investigation into the links between hedge funds and independent analysts. Aguirre was fired from his job with the SEC when, as lead investigator of insider trading allegations against Pequot Capital Management, he tried to interview John Mack, then being considered for chief executive officer at Morgan Stanley. The Judiciary Committee and the US Senate Finance Committee issued a scathing report in 2007, which found that Aguirre had been illegally fired in reprisal for his pursuit of Mack, and in 2009 the SEC was forced to re-open its case against Pequot. Pequot settled with the SEC for US$28 million, and Arthur J. Samberg, chief investment officer of Pequot, was barred from working as an investment advisor. Pequot closed its doors under the pressure of investigations.


title: Hedge fund

text: The systemic practice of hedge funds submitting periodic electronic questionnaires to stock analysts as a part of market research was reported by "The New York Times" in July 2012. According to the report, one motivation for the questionnaires was to obtain subjective information not available to the public and possible early notice of trading recommendations that could produce short-term market movements.


title: Hedge fund

text: According to modern portfolio theory, rational investors will seek to hold portfolios that are mean/variance efficient (that is, portfolios that offer the highest level of return per unit of risk). One of the attractive features of hedge funds (in particular market neutral and similar funds) is that they sometimes have a modest correlation with traditional assets such as equities. This means that hedge funds have a potentially quite valuable role in investment portfolios as diversifiers, reducing overall portfolio risk.


title: Hedge fund

text: However, there are at least three reasons why one might not wish to allocate a high proportion of assets into hedge funds. These reasons are:


title: Hedge fund

text: Several studies have suggested that hedge funds are sufficiently diversifying to merit inclusion in investor portfolios, but this is disputed for example by Mark Kritzman who performed a mean-variance optimization calculation on an opportunity set that consisted of a stock index fund, a bond index fund, and ten hypothetical hedge funds. The optimizer found that a mean-variance efficient portfolio did not contain any allocation to hedge funds, largely because of the impact of performance fees. To demonstrate this, Kritzman repeated the optimization using an assumption that the hedge funds took no performance fees. The result from this second optimization was an allocation of 74% to hedge funds.


title: Hedge fund

text: Hedge funds tend to perform poorly during equity bear markets, just when an investor needs part of their portfolio to add value. For example, in January–September 2008, the Credit Suisse/Tremont Hedge Fund Index returned -9.87%. According to the same index series, even "dedicated short bias" funds returned −6.08% in September 2008, when Lehman Brothers collapsed.


title: Red (Taylor's Version)

text: Red (Taylor's Version) is the second re-recorded album by American singer-songwriter Taylor Swift. It was released on November 12, 2021, through Republic Records, as the re-recording of Swift's fourth studio album, "Red" (2012), and the follow-up to her first re-recorded album "Fearless (Taylor's Version)" (2021). The release is part of Swift's response countering the purchase of the masters of her back catalog.


title: Red (Taylor's Version)

text: The 30-track "Red (Taylor's Version)" includes the re-recorded versions of 20 songs from the deluxe edition of "Red;" the 2012 charity single "Ronan"; the 10-minute-long, unabridged version of "All Too Well"; Swift's own recordings of "Better Man" (2016) and "Babe" (2018), both of which she wrote but had given to Little Big Town and Sugarland respectively; and six previously unreleased "From the Vault" tracks. All of the producers of "Red", except Nathan Chapman, Dann Huff, and Max Martin returned to produce the re-recorded album alongside new inputs from Christopher Rowe, Aaron Dessner, Jack Antonoff, Espionage, and Elvira Anderfjärd. Phoebe Bridgers and Chris Stapleton joined the album as guest vocalists alongside original features from Gary Lightbody and Ed Sheeran.


title: Red (Taylor's Version)

text: The album was met with widespread critical acclaim. Contemporaneous journalists described it as a classic pop record with a country core, infusing rock and electronic flairs. Its subject matter deals with various dynamics of love, life, loss and heartache. Swift's vocals, the enhanced production quality, and the new tracks were often commended in the reviews. "Red (Taylor's Version)" broke a string of commercial records, including the biggest vinyl sales week in MRC Data history and the Spotify record for the most single-day streams for an album by a female artist. It topped the charts in Argentina, Australia, Canada, Ireland, New Zealand, Norway, Scotland, and the United Kingdom. In the United States, it was Swift's fourth number-one on the "Billboard" 200 chart in less than 16 months, making her the fastest artist to collect four number-one albums.


title: Red (Taylor's Version)

text: Swift promoted the album with televised appearances on NBC and a self-directed short film called "". Vault songs "I Bet You Think About Me" and "Message in a Bottle" were released as country and pop radio singles, respectively. "Red (Taylor's Version)" charted 28 of its tracks on the US "Billboard" Hot 100, garnering the record for the most single-week new entries by an artist; "All Too Well (10 Minute Version)" debuted atop the chart, becoming Swift's eighth number-one on the Hot 100 and the longest number-one song of all time—a feat recognized in the "Guinness World Records". Winning various accolades, publications have highlighted "Red (Taylor's Version)" as a key pop culture moment of 2021.


title: Red (Taylor's Version)

text: Taylor Swift's fourth studio album, "Red," was released on October 22, 2012, by American independent record label Big Machine Records. It witnessed Swift expand beyond her country roots and explore mainstream pop, incorporating a variety of genres. The effort was met with generally positive reviews and widespread commercial success. It garnered Swift's first number-one song on the US "Billboard" Hot 100, the album's lead single "We Are Never Ever Getting Back Together", and other successful singles in 2012 and 2013, such as "I Knew You Were Trouble", "22" and "Everything Has Changed". "Red" became Swift's first number-one album in the UK, and her album with the most UK top-10 singles so far. Over the years, the album collected critical praise for showcasing Swift's artistry and versatility. It became one of the most acclaimed albums of the 2010s decade, appearing on many decade-end best-music lists. "Rolling Stone" placed it at number 99 on its list of the 500 Greatest Albums of All Time. As of June 2021, "Red" has moved over 7.5 million album-equivalent units in the US alone.


title: Red (Taylor's Version)

text: As per her contract with Big Machine, Swift released six studio albums under the label from 2006 to 2017. In late 2018, the contract with the label expired; she hence withdrew from Big Machine and signed a new recording deal with Republic Records, a division of Universal Music Group, which secured her the rights to own the masters of the new music she will release. In 2019, American businessman Scooter Braun and his company Ithaca Holdings acquired Big Machine. As part of the acquisition, ownership of the masters to Swift's first six studio albums, including "Red", transferred to Braun. In August 2019, Swift denounced Braun's purchase of the label, and announced that she would re-record her first six studio albums, so as to own their masters herself. In November 2020, Braun sold the masters to Shamrock Holdings, an American private equity firm owned by the Disney estate, under the conditions that Braun and Ithaca Holdings will continue to financially profit from the albums. Swift began re-recording the albums in November 2020.


title: Red (Taylor's Version)

text: "Fearless (Taylor's Version)", the first of her six re-recorded albums, was released on April 9, 2021. It achieved critical and commercial success, and debuted at number one on the "Billboard" 200 chart as the first re-recorded album in history to top the chart, a return to the number-one spot 13 years after the original release in 2008. All of its singles, "Love Story (Taylor's Version)", "You All Over Me", and "Mr. Perfectly Fine", peaked inside the top 10 of the "Billboard" Hot Country Songs, the first of which was her first number-one on the chart since "We Are Never Ever Getting Back Together" and made her only the second artist in history to top the chart with both the original and re-recording of the same song, after "I Will Always Love You" by Dolly Parton.


title: Red (Taylor's Version)

text: Music critics characterized "Red (Taylor's Version)" as a pop and country album. The songs incorporate eclectic styles from synth-pop to arena rock with both acoustic instruments and electronic elements. Tracks 1–20 are re-recordings of all the songs on the original "Red", and track 21, "Ronan (Taylor's Version)", is a re-recording of a charity single Swift had released in 2012. All of the re-recorded tracks are musically identical to their original 2012 recordings, except "Girl at Home" which has been reworked into an electropop and synth-pop song. The re-recorded tracks feature a subtly sharper production and emphasize the instruments that, according to Carrie Battan from "The New Yorker", resemble live performances. Critics noted Swift's vocals on "Red (Taylor's Version)" are more mature and resonant compared to the original.


title: Red (Taylor's Version)

text: Tracks 22–30 are labeled "From the Vault", which are songs Swift had written but did not make the final cut of the 2012 album. While all of the "From the Vault" tracks consist of unreleased songs, two songs—"Better Man" and "Babe"—are songs that had been written by Swift and recorded by Little Big Town in 2016 and Sugarland in 2018 respectively.


title: Red (Taylor's Version)

text: "Better Man" is a banjo-led country ballad that incorporates mandolin and strings with lyrics about the aftermath of a painful breakup. "Nothing New" is a folk duet with Phoebe Bridgers, with lyrics dealing with insecurities around aging, and the "unfair social expectations on young women". "Babe" is a ska pop song with slide guitar, keyboards, brass, and percussion. Its lyrics describe the missteps in a dissolving relationship.


title: Red (Taylor's Version)

text: "Message in a Bottle" is an upbeat dance-pop track about the beginnings of a romantic connection. "I Bet You Think About Me" is a country pop song featuring background vocals by Chris Stapleton, and a prominent harmonica. It has tongue-in-cheek lyrics deriding an ex-lover's luxurious and pretentious lifestyle. "Forever Winter" is a power pop song opening with energetic brass. Swift's vocals in the song are characterized by "nuanced, wide-ranging", fast paced, breathy notes of syllables, set to horns, flutes and guitars. Lyrically, "Forever Winter" is directed to a friend of Swift with mental health struggles.


title: Red (Taylor's Version)

text: "Run" is an acoustic, indie folk-leaning duet with Ed Sheeran. It is guided by a twiddling guitar and orchestral compositions, while its lyrics consisting of romantic gestures. "The Very First Night" is an uptempo dance-pop song driven by electronic programming and banjo in which Swift wishes she could go back in time to make a moment perfect. "All Too Well (10-Minute Version)", Swift's longest song in her entire discography, is a slow ballad driven by a thudding and insistent bass guitar, and additional verses, chorus with a downtempo outro. Its lyrics take a more feminist proposition compared to the five-minute version, and incorporates the popular William Shakespeare quote "All's Well That Ends Well".


title: Red (Taylor's Version)

text: The cover artwork of "Red (Taylor's Version)" depicts Swift wearing red lipstick, a beige peacoat and a burgundy-colored "Matti" fisherman velvet cap, seated in a vintage 1932 Chevrolet Cabriolet convertible with an autumnal background. Janessa Leoné designed the cap which quickly sold out on Leoné's website. Swift also wears a customized "Red" ring on the cover, designed by jeweler Cathy Waterman; she wore Waterman's signature "Love" ring, gifted to her by Waterman's daughter Claire Winter Kislinger in 2011, while writing the original "Red" (2012).


title: Red (Taylor's Version)

text: On June 18, 2021, Swift revealed that "Red (Taylor's Version)", the re-recorded issue of "Red," would be released on November 19, 2021, and would contain all 30 songs that were meant to be on the 2012 version. She also teased the highly requested, original 10-minute-long version of the fan-favorite track "All Too Well" as part of the track listing, which was "probably a 20-minute song" according to American songwriter Liz Rose, who had co-written some tracks on Swift's first two studio albums, "Taylor Swift" (2006) and "Fearless" (2008). Alongside the announcement, pre-orders for the digital album were made available.


title: Red (Taylor's Version)

text: On June 27, English singer-songwriter Ed Sheeran appeared on "The Official Big Top 40", where he confirmed his involvement with "Red (Taylor's Version)", saying he re-recorded "Everything Has Changed"—his duet with Swift on "Red". Three days later, Swift's 2012 charity single, "Ronan", was also confirmed as a track on the album by Swift's co-writer and the mother of the song's subject, Maya Thompson, via her blog. On August 5, Swift posted a cryptic video across her social media, teasing a word puzzle for the fans to solve; it spelled out "Chris Stapleton", "Phoebe Bridgers", "Babe", "Better Man", and "All Too Well Ten Minute Version". Concurrently, pre-orders for the album's CDs went up on Swift's website. She posted the official track listing on August 6. Before releasing any song from "Red (Taylor's Version)", Swift released "Wildest Dreams (Taylor's Version)" on September 17, a track set to appear on the re-recording of her 2014 studio album, "1989". She said she saw "Wildest Dreams" trending on TikTok and thought fans should have her version.


title: Red (Taylor's Version)

text: On September 30, Swift announced "Red (Taylor's Version)" would be released on November 12, a week earlier than scheduled. She confirmed the album's vinyl LPs would also be shipped the same week. A snippet of the title track, "Red (Taylor's Version)", featured in a teaser video posted by Swift on October 24, sporting a red dress, the "Red" ring from the album cover, alongside an array of red clothes and accessories. On November 5 via "Good Morning America", Swift revealed a teaser for "", which is based on and titled after the namesake song, screening on November 12 alongside the album. The teaser showed a vintage car driving past a road bounded by autumnal woods, and it was written and directed by Swift starring herself, Sadie Sink, and Dylan O'Brien. On November 11, the official film poster was revealed on her social media, followed by a short teaser of the album's 24th track, "Babe (Taylor's Version)", on Tumblr.


title: Red (Taylor's Version)

text: Swift released four six-song compilations, "Red (Taylor's Version): Could You Be the One Chapter", "Red (Taylor's Version): She Wrote a Song About Me Chapter", "Red (Taylor's Version): The Slow Motion Chapter" and "Red (Taylor's Version): From The Vault Chapter" on January 13, 18, 25 and 31, 2022, respectively.


title: Red (Taylor's Version)

text: Swift promoted the album on all three late-night shows of American television network NBC which were all taped at 30 Rockefeller Plaza; she appeared on the talk shows "The Tonight Show Starring Jimmy Fallon" and "Late Night with Seth Meyers" that aired back-to-back on November 11, followed by the album's release at midnight. She appeared as the musical guest of the live sketch comedy show "Saturday Night Live" on November 13, her fifth appearance on the show, where she performed the 10-minute version of "All Too Well". The first live performance of "All Too Well (10 Minute Version)" was at Lincoln Center, New York City, on November 12, following the premiere of Swift's self-directed "", which stars Sadie Sink and Dylan O'Brien. Starbucks partnered with Swift to commemorate the release of "Red (Taylor's Version)", which coincided with the company's "red cup holiday season"; customers were able to order Swift's favorite coffee drink by simply ordering a "Taylor's Latte", whereas her music, including the album, were played inside Starbucks stores.


title: Red (Taylor's Version)

text: On November 15, 2021, "I Bet You Think About Me" featuring Chris Stapleton was serviced to U.S. country radio stations as a single from the album. On the same day, "All Too Well (10 Minute Version)" with a digital cover artwork was made available for download on Swift's webstore as a promotional single. The song debuted atop the "Billboard" Hot 100. It became Swift's eighth number-one on that chart and the longest number-one song in history, surpassing the previous record-holder Don McLean's "American Pie (Parts I and II)". "Message in a Bottle" impacted U.S. pop radio later that month.


title: Red (Taylor's Version)

text: "Red (Taylor's Version)" received widespread acclaim from music critics, who praised the enhanced production and Swift's vocals. At Metacritic, which assigns a normalized rating out of 100 to reviews from professional publications, the album received a weighted mean score of 91 based on 16 reviews, indicating "universal acclaim"; it is Swift's highest-rated project on the site and the second-highest rated album of 2021, behind "Carnage" by Australian musicians Nick Cave and Warren Ellis.


title: Red (Taylor's Version)

text: In a rave review, Lydia Burgham of "The New Zealand Herald" hailed "Red (Taylor's Version)" as Swift's magnum opus. "Rolling Stone" music critic Rob Sheffield wrote "the new "Red" is even bigger, glossier, deeper, casually crueler", powered by Swift's adult voice. Helen Brown of "The Independent" stated "Red (Taylor's Version)" is a "better, brighter version of a terrific pop album". "NME" Hannah Mylrea praised the album's newly added tracks, and highlighted the sharper production quality and the "instrumentation being brought further into focus". Beth Kirkbride, writing for "Clash", said that, with the new additions, "Red (Taylor's Version)" is a "medley of genres" toying with various styles. She described its subject matter as "an exercise in catharsis" that retreads like a storybook of Swift's formative years.


title: Red (Taylor's Version)

text: Kate Solomon of "I" wrote that Swift's voice is "leagues better now" and "the vocal furniture that she adds to the songs are like her revelling in that knowledge, flexing newly limber muscles." "Under the Radar" reviewer Andy Von Pip commended "Red (Taylor's Version)" for having a sharper production and "richer" vocal performances than "Red" without losing the seriousness and emotional heft of its subject matter. "Variety" Chris Willman called its vault tracks "a collection of songs that doesn't have a real dud". Reviewing for "The Line of Best Fit", Paul Bridgewater opined that "Red (Taylor's Version)" "balances fan service alongside an insightful documentation of one of modern pop's best songwriters at a key juncture in her career", and added that Swift has carefully curated the expanded tracklist without devolving from the album's original appeal. "Slant Magazine" critic Jonathan Keefe said that "Red (Taylor's Version)" is a testament to the growth of Swift's musicality and praised the album's instrumental quality for giving its songs "a stronger emotional resonance".


title: Red (Taylor's Version)

text: Calling "Red (Taylor's Version)" a "highly rewarding listen" for both fans and casual listeners and "another towering victory" for Swift after "Fearless (Taylor's Version)", Bobby Olivier of "Spin" praised all aspects of the album—the vocal performances, songwriting, and production. "Consequence" Mary Siroky felt the expanded record functions as a closure to the original album, allowing Swift to "finish the story on her terms". Receiving the coveted "Best New Music" honor from "Pitchfork", critic Olivia Horn said "Red (Taylor's Version)" contains Swift's signature "ecstatic, expressive vocals, tart humor, vivid imagery, and tender attention to the nuances of love and loss", and makes an artistic statement about revisiting the past, "both the flattering and the less flattering bits". "The Atlantic" Spencer Kornhaber said Swift "continues to push herself to new places as she doubles down on the things that make her beloved".


title: Red (Taylor's Version)

text: Melissa Reguieri, in her "USA Today" review, appreciated the versatile musicality, strong vocals, meticulous replication, and enhanced production quality of "Red (Taylor's Version)", as well as regarding the album an "intriguing study" of Swift's lyrical proficiency. Sputnikmusic called the album "an absolute triumph" for the insight of its musical and lyrical approach, and criticized their own "immature" review of the album in 2012, confirming "Swift's observations about love and life at age twenty-two were simply amazing". "The Guardian" writer Laura Snapes stated that Swift's voice is richer and more mature in the re-recorded album, but its lack of twang "slightly blunts the rabid, deliciously vindictive edge that fueled the original's tumultuous depiction of heartbreak".


title: Red (Taylor's Version)

text: "Red (Taylor's Version)" received many accolades of the music industry, such as placements on best-of lists. At the 2022 "Billboard" Music Awards, Swift received seven nominations, including wins for Top Country Album nomination for "Red (Taylor's Version)," Top Country Artist, Top Country Female Artist, and Top "Billboard" 200 Artist. At the American Music Awards of 2022, Swift won in all of the six categories for which she was nominated including Artist of the Year, Favorite Pop Female Artist, and Favorite Country Female Artist.


title: Red (Taylor's Version)

text: Upon release "Red (Taylor's Version)" broke several streaming records. It became the most-streamed album in a day from a female artist on Spotify, with more than 90.8 million global opening-day streams, surpassing the previous record of 80.6 million by Swift's own "Folklore" (2020). Bolstered by the album's strong performance, Swift also became the most streamed woman in a single day—with more than 122.9 million global streams on the platform across her entire discography—and the first woman in Spotify history to amass 100 million streams in a day. The album moved over 1.2 million copies globally in its first week. All of the album's tracks appeared on the "Billboard" Global 200 chart as 28 new entries, alongside "Enchanted" (2010), "Blank Space" (2014) and "Wildest Dreams (Taylor's Version)" (2021), giving Swift a sum of 31 songs charting in the same week (November 27, 2021); 25 of those were in the top 100 region. At the end of the year, Swift was the most streamed woman on Spotify in 2021, and the second most streamed act behind Puerto Rican rapper Bad Bunny. The International Federation of the Phonographic Industry (IFPI) reported that Swift was the world's best selling soloist and female artist of 2021, for a third consecutive year. The album sold 1.14 million copies in 2021.


title: Red (Taylor's Version)

text: Within five days of its release, "Red (Taylor's Version)" sold over 500,000 album-equivalent units, including 325,000 album sales, which marked 2021's largest sales week for an album already, surpassing Swift's own "Evermore" (2020). Of those sales, 112,000 were in the vinyl LP format, breaking the record for the largest vinyl sales week for an album in the history of MRC Data (also held previously by "Evermore"). Concurrently, Swift had three of the four largest album sales weeks of 2021, with "Red (Taylor's Version)", "Evermore" and "Fearless (Taylor's Version)".


title: Red (Taylor's Version)

text: Upon completion of its full tracking week, "Red (Taylor's Version)" debuted at number one on the "Billboard" 200 with 605,000 units, marking the then-second largest week of 2021, behind Drake's "Certified Lover Boy" (613,000). The first-week sum consists of 303.23 million on-demand streams, the largest streaming week of 2021 for an album by a woman, the second-largest ever after Ariana Grande's 2019 album "Thank U, Next" (307.1 million streams), and the biggest for a country album, surpassing Morgan Wallen's 2021 album "" (240.18 million). The album opened with 369,000 pure album sales, of which 114,000 were vinyl LP sales, and marked the largest sales week for a country album since Luke Bryan's "Crash My Party" sold 528,000 copies in 2014. It marked Swift's tenth "Billboard" 200 chart-topper, making her the second woman to score that many number-one albums after Barbra Streisand, who has 11. Swift also became the fastest soloist to earn four number-ones on the "Billboard" 200 (less than 16 months), breaking Elton John's 46-year-old record. The album further topped the Top Country Albums as Swift's seventh number-one and spent 7 weeks at the top, helping Swift surpass Shania Twain as the longest reigning female artist of the chart with 98 weeks atop it. "Red (Taylor's Version)" ranked second on the best-selling albums list of 2021, alongside "Fearless (Taylor's Version)", "Evermore" and "Folklore" in the top 10.


title: Red (Taylor's Version)

text: 26 of the album's tracks entered the "Billboard" Hot 100 simultaneously, setting the records for the most debuts on the Hot 100 in a single week and the most simultaneous Hot 100 entries by a female artist, both of which were held by Swift herself with the release of "Lover" (2019). Her career total entries increased to 164, extending her record for the most Hot 100 entries by a female artist. Four of those tracks landed inside the Hot 100's top 40 region, bringing Swift's sum of top-40 entries to 85—the third highest sum in history, surpassing Elvis Presley. "All Too Well (Taylor's Version)", carried by the success of its 10-minute rendition, arrived atop the Hot 100 chart as Swift's eighth number-one song in the US. Swift became the first act in history to debut at number-one on both the "Billboard" 200 and Hot 100 charts simultaneously in three different occasions, following "Cardigan" and "Folklore" in August 2020 and "Willow" and "Evermore" in December 2020.


title: Red (Taylor's Version)

text: "Red (Taylor's Version)" opened at the number one spot of the "Billboard" Canadian Albums, scoring Swift her tenth consecutive number-one album in Canada. All of its tracks debuted on the Canadian Hot 100 chart together, with "All Too Well (Taylor's Version)" at number one, "State of Grace (Taylor's Version)" at number 9, and nine other tracks in the top 40. "Red (Taylor's Version)" was the best-selling country album in Canada by a female artist in 2021. Overall, it was the fifth best-seller across all genres, and one of the top 10 best-selling digital, CD and vinyl albums.


title: Red (Taylor's Version)

text: In the United Kingdom, the album debuted at number one on the UK Albums Chart and moved over 72,000 units within its first week. It became Swift's eighth consecutive number-one album, tying her with Kylie Minogue as the female artists with the second most number-one albums in the UK, only behind Madonna (12). "Red (Taylor's Version)" earned the highest opening-week sales for a female artist in 2021, eclipsing "Sour" by Olivia Rodrigo (51,000 units).


title: Red (Taylor's Version)

text: It also topped the Irish Albums Chart as Swift's seventh number-one album in Ireland—the most for a female artist this millennium. The album debuted atop the chart alongside "All Too Well (Taylor's Version)" debuting atop the Irish Singles Chart, marking a "chart double". Additionally, "State of Grace (Taylor's Version)" and "Red (Taylor's Version)" arrived at numbers 7 and 9 on the singles chart, respectively.