The Alternative Investment Management Association  Alternative
Investment Management Association  You are:      pair trading  A
relative value approach that seeks to identify similar companies
in a given sector, whose securities are trading or are
anticipated to trade at a wide differential. The manager of such
a fund would assume a short position in the overvalued security,
while taking a long position in the undervalued one.
performance fee  A fee paid to a fund manager for providing
returns on an investment, often by reference to a benchmark or
Hurdle rate. This fee is based on net new profits and is earned
by the hedge fund manager for the period concerned. It may be
paid annually or quarterly but accrues monthly in the fund
valuation. Also known as Incentive fee.  performance trigger
Also known as Stop Loss, it is the point at which a hedge fund's
losses cause specific contractual provisions designed to
insulate investors from further losses.  The smallest price unit
of a commodity or currency. See Pri