Risk Arbitrage- Simultaneously buying stock in a company whose assets are being acquired and selling stock in the company or companies doing the acquiring.

Distressed- Investing in the equity or debt of companies undergoing reorganization or bankruptcy in the hopes that those securities will appreciate.

Diversified- Capital is invested in a variety of fund types.

Niche- Capital is invested in a specific type of fund.

Regional- Focuses on opportunities in established markets. Specifically U.S., Europe and Japan.

Emerging- Focuses on opportunities in less mature emerging markets. Specifically Asia, Australia, China, Eastern Europe, Hong Kong, India, Latin America, Middle East, Pakistan, Pacific Rim, Russia and Singapore.

Opportunistic- Focuses on and hopes to realize profits from significant global macroeconomic changes.

Leveraged- Traditional equity funds that are structured as hedge funds, using a high ratio of bonds and preferred stock.

Long/Short- Net exposure to market risks is reduced by having equal allocations on both the long and short sides of the market.

Convertible- Long convertible security. Short underlying equity. Profit comes from disparity in pricing of the two.

Industry- Focuses on companies within a particular economic or industry sector. Specifically Health Care, Financial Services, Food & Beverage, Media & Communications, Natural Resources, Oil & Gas, Real Estate, Technology, Transportation, Utilities, etc.

Short Seller- Based on finding overvalued companies, selling borrowed stock in them hoping to buy them back at a lower price.

Short-biased- Manager prefers the short side but also takes long positions.