Hedge Funds

Actor Type: Trader Breaks When: Low Volatility Capital Intensity: Low Cash Flow Stability: Highly Variable Economic Nature: Financial Margin Driver: Volatility Notes / Insights: Profit from uncertainty itself Performs Best When: High Volatility Pricing Power: None Primary Function: Trade oil derivatives Primary Risk Transfer Mechanism: Derivatives Public / Private Mix: Private Representative Firms: Citadel, Millennium Residual Risk After Transfer: High Revenue Model: Trading P&L Typical Margin Profile: Highly Variable Value Chain Segment: Financial Who Ultimately Bears the Risk?: Investors