Exploring Hedge Fund Strategies in Portfolio Management Using Financial Derivatives and Their Impact on Market Volatility

Abstract

This paper aims to explore the strategies employed by hedge funds when using financial derivatives for portfolio management and their impact on market volatility. It begins with a discussion of the importance of hedge funds in the investment world, followed by an examination of the strategies they employ, including the use of financial derivatives such as futures, options and swaps. In addition, the influence of these strategies on market volatility is also analyzed. This study provides valuable insights on hedge fund investment strategies and their impact on the market and has important reference value for investors and hedge fund managers. Hedge fund has attracted more and more attention in the investment field. Its unique strategy and high return ability make it highly valued in the investment community. This article takes an in-depth look at the strategies employed by hedge funds when using financial derivatives for portfolio management and explores the impact of these strategies on market volatility.