Summary Essay Example | Topics and Well Written Essays - 1250 words - 3

Summary - Essay Example Hedge fund is often depend on the manager’s expertise, is largely offered as private investment, is structured as limited partnership and often presents a narrow range of investors. Compared to the traditional funds, Hedge funds; have an industry size of $2.6 trillion, it has an absolute return, it has short or long investment, has high strategic complexity, has lower correlation to the market, has leverage, higher turnover, high based on performance, has large minimum investment and a low transparency. Investors are high net worth people, institutional investors and funds of funds managers. For hedge funds, the minimum size of investment is often high and at least 1 million dollars. Investors often seek stable, attractive and non market correlated returns. Pension funds make up 15%, followed by individual funds 30%, endowment 12% percent and corporation 11% (Zimmermann, 2009). Hedge fund strategies cover aids in representing the hedge fund universe that includes event driven, long/short equity, global macro, multi-strategy, emerging markets, fixed income arbitrage, managed future. Event driven strategy helps to exploit pricing that results from corporate events that are often anticipated. Managed futures strategy is also known as commodity trading advisors and is an approach aimed at investing in futures contracts in equity, bond, current market and commodity (Zimmermann, 2009). It utilizes pattern and trend recognition models as well as means reversion. Fund of hedge funds entails investing in another hedge fund. The main aim is the fund, manager and strategy. Some of the key risks to the hedge fund strategy entail poor liquidity, high leverage, lack of regulation, operational risks and lack of transparency (Zimmermann, 2009). CPP is the proportion portfolio insurance which aids in ensuring a hundred percent of the capitals of the investors is protected. CPPI determines the composition of investment

Thawing permafrost Term Paper Example | Topics and Well Written Essays - 1750 words

Thawing permafrost - Term Paper Example 99 percent of Greenland, 40 to 50 percent of Canada, and about 20 percent of Far East especially in China is permafrost. This distribution is affected by air temperature close to the ground and to a smaller degree the depth of snow, the direction the sun is facing, vegetation, types of soil, adjacent water bodies, and heat emanating from earth’s core. Permafrost may occur in any area with an annual average air temperature that is below freezing that is air temperature that is below 32F (0C) or what is commonly known as subzero air temperature. Snow on the surface of the permafrost, insulates and compliments the effective effect of the temperature of the air close to the ground, this results in air temperatures of up to 42.8 F, this might be higher than the local mean annual air temperature. The process of permafrost happen in millennia , this mostly happened during the ice age period and they include the contents of the ground before they were frozen such as solid rock, soft s oil deposits, gravel, and other organic materials in the soil. Introduction The occurrence of permafrost is not universal, that is the reason that permafrost are categorized into different zones, the categorization takes into account the percentage of land area covered by permafrost. The continuous permafrost zones contain permafrost that is 90 -100 percent of the land area; discontinuous zones have permafrost of between 50 to 90 percent ; sporadic permafrost have between 10 to 50 percent and finally isolated patches have underlying permafrost content of less than 10 percent (Salvatore et al. 76). In permafrost regions, the outlying layer is known as the active layer, it is on the surface of the soil, it usually thaws at the beginning of spring through the summer, attaining maximum depth in the late summer. At the onset of winter, the active layer freezes extending until very late in the season or just at the beginning of spring. The thickness of the active layer stretches from a me re 15 cm or less usually found in the coast of the Arctic coast to about 3 meters or even more in Southern Siberia, European Alps and in the Qinghai-Tibetan Plateau. The thickness or depth of the permafrost from the permafrost table to the permafrost base is determined by two factors, first, active layer freezing; secondly, the heat emanating from the earth core, the unfrozen layer. Temperatures of permafrost at greater depths reveal unpredictability in climate conditions for extended time durations; this is because heat spreads gradually throughout permafrost. In addition, the report further says that the temperatures in the ground implies the inconsistency in the air temperature, but becomes increasingly inactive with increasing depth. Temperatures of the permafrost are not affected by seasonal variations, such as summer and winter, at all. The mean annual ground temperature that are below the depth of zero annual amplitude reflect past and present long term in changes in mean cli mate conditions or regimes(Woods and Alter 92). The depth of zero annual amplitude varies from a few meters in discontinuous permafrost zones to over 20 meters in continuous permafrost regions (Thomas and Andrew 365). The purpose of this paper is to attempt to have a deeper understanding of the concept of permafrost thawing, and the consequences of such an eventuality; on the people and the environment. The impacts of permafrost thaw Thawing of permafrost results in