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	Hedge Funds Depository Receipts No Load Mutual Funds Earn Big Returns On Your Investment Using A Well-Known, But Little-Understood No-Load Mutual Fund Strategy. Angel Investor Arbitrage Depository Receipts Emerging Markets Long or Short Equity Fund of Funds Comparison to Mutual Funds Comparison to Private Equity Hedge Fund Regulation Hedge Fund Risk Arbitrage Hedge Fund Strategies Venture Capital Depository receipts are types of securities that are offered as a tracking stock on a foreign market. For example, if a Japanese company wishes to raise more money, it may issue a depository receipt on the New York Stock Exchange, since the amount of capital on the local exchanges are limited. These securities, known as American Depository Receipt or ADRs, or Global Depository Receipt or GDRs, depending on where they are issued, are typically considered foreign in origin and hence trade at a lower value when first released. They are however, exchangeable into the original security which is known as fungibility, and in reality have the same value. In this case there exists a spread between the perceived value and real value, which can be extracted. Since the American Depository Receipt is trading at a value lower than what it is worth, one can purchase it and expect to make money as its value converges towards the original. There however is a chance that the original stock might fall in value too, hence by shorting it you can hedge that risk as well.