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	Hedge Funds Hedge Fund Risk Arbitrage 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 One of the very common hedge strategies is to buy shares of a company that is in the process of a merger or an acquisition. The company's stock usually has an announced price that it will be worth on the date of the merger, so that if the stock is under that value prior to the merger, it would be a safe investment to purchase the stock and wait. This strategy can at times prove to be risky, since there is no assurance the merger will be finalized and that the stock may be left at its current value or drop in value. Often it has been seen that the trader will also short sell the stock of the acquiring company, in addition to buying the stock of the target. Most of the early hedge funds used to employ this strategy and hence they became very popular as a way of seeing better gains than the investment grade bond market, while still having a comparatively low risk. However, one of the side effects of this popularity was to dramatically increase the interest in all the non-standard investment strategies, and soon after, other funds were being set up with new strategies aimed essentially at high growth. Although there is no hedging in these cases, the term is used for these funds as well, all the same. Hedge funds can be broken down into seven broad classifications: " Event driven " Equity market-neutral " Long/short equity " Fixed-income arbitrage " Global convertible bond arbitrage " Global macros " Commodity trading