3 Types of Hedge Fund Strategies

What should my fund approach be?

Let’s talk Fund Strategies.

I was expanding my knowledge about hedge funds last week by talking with a few friends in my network and reading just about anything I could get my hands on.

But as in all content, there was some good …. and then some bad.

There was useful content and then some that was entirely useless.

I’m going to share with you guys some things I found that would be useful to know about different fund strategies.

One could bucket fund strategies into a lot of different ways.

I like to bucket them into 3: 

  • The Micros
  • The Macros 
  • The Activists

Now, under each of these strategies, are anywhere from 5-10 different approaches that we talk about! In my course we discuss them, but I’ll give you the brief on these three right now. 


  • Micro Funds like to focus on one thing, and one thing only. No time for big picture, multi-strategy approaches.
  • Micros are more detail-oriented.
  • Example: Quants – Trading only from a buy or sell signal on an algorithm.


  • These funds have a big picture mindset.
  • They make decisions based on different economic indicators, trends, and policy changes. 
  • Example: Bridgewater Associates is a $150 billion global macro hedge fund that invests based on economic trends, such as inflation, exchange rates, and U.S. Gross Domestic Product readings.


  • This type of fund is a little more unique. While most Hedge Funds are just exchanging equity positions, activist funds are trying to influence a stocks market price.
  • Example: A Hedge Fund holding a large short position might publish a report exploiting how a company is another soon to be Theranos.. and then reap the rewards.

Not even scratching the surface there – but you get the idea.

There are many different ways to approach fund strategies. It can become complicated waters to navigate… so hopefully this helped clear things up a little bit!

If you have any questions make sure to hop on my free webinar and I would love to help!

Thanks for the read!

Bridger Pennington


DISCLAIMER: This content is for educational and informational purposes only. It is not to be taken as tax, financial, or legal advice. You should always consult a legal professional before taking action. Furthermore, this is not a recommendation to buy or sell any security. The content is solely just the opinion of the authors.

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