STUDY OF THE HEDGE FUNDS, AS AN INSTRUMENT FOR HEDGING OR AS AN ISNTRUMENT OF RISK

Abstract

In this paper, I focus on the study of hedge funds as a special type of investment funds that operate with very high yields and they can be considered as an instrument for the protection of investments, but also with their existence in same moment they represent and the instrument of risk. Hedge funds also represent an alternative choice for financing business that despite the prevalence in developed economies, Macedonia is still in its germ, and there is a great potential for use especially in conditions of low level of lending of small and medium-sized businesses by the banking system in terms of low solvency of companies on the one hand, and on the other an opportunity for investors to create investment portfolio with a high rate of return and earnings of the investment. My main goal is to investigate and the recognition of the strengths and weaknesses of using hedge funds as an alternative for financing innovation on the one hand, and as an alternative to achieve higher profits with higher risk for investors in the fund. The restriction of labor stems from representation and development of hedge funds in Macedonia, and beyond to the Balkans, because the paper is theoretical.