Markets
Here’s 48 Hedge Fund Terms Every Investor Should Know
Here’s 48 Hedge Fund Terms Every Investor Should Know
For many investors, hedge funds appear to be shrouded in mystery.
There’s a practical reason for this. The best hedge funds are extremely careful about protecting their ideas and tactics, because they provide an important competitive advantage for making profits. An example that illustrates the paranoia around this was described in Flash Boys by Michael Lewis, where he noted that at the ultra-secretive firm Citadel, it took five ID card swipes for an employee to simply start her day.
There’s also a psychological reason for the secrecy – which is that hedge funds want to appear incredibly complex and sophisticated, so that accredited investors will part with their money in order to get exposure to them. While hedge fund tactics are often intricate and extremely lucrative, understanding how they work is not as impenetrable as it may seem.
Hedge Fund Terms Investors Should Know
Today’s infographic comes to use from StocksToTrade, and it captures 48 terms that can serve as an entry point for any investor into the mysterious world of hedge funds.
It covers essential ideas around how hedge funds make their bets, such as: arbitrage, hedging, pairs trading, alpha, and beta. The infographic also looks at hedge fund terms around measuring performance and risk, as well as words that describe fee structures and payouts.
Interestingly enough, we live during a time when modern technology has also allowed retail investors more access to these types of tactics than ever before. Take a look at this infographic on alternative investments, which gives examples of ETFs and mutual funds that mimic traditional hedge fund strategies such as long/short equity, merger arbitrage, or managed futures.
Want to learn more about how hedge funds work?
This post on WallStreetMojo outlines nine popular hedge fund strategies, or check out our favorite book on global macro investing: Inside the House of Money by Steven Drobny.
Mining
Ranked: The World’s Top Diamond Mining Countries, by Carats and Value
Who are the leaders in rough diamond production and how much is their diamond output worth?

Ranked: World Diamond Mining By Country, Carat, and Value
Only 22 countries in the world engage in rough diamond production—also known as uncut, raw or natural diamonds—mining for them from deposits within their territories.
This chart, by Sam Parker illustrates the leaders in rough diamond production by weight and value. It uses data from Kimberly Process (an international certification organization) along with estimates by Dr. Ashok Damarupurshad, a precious metals and diamond specialist in South Africa.
Rough Diamond Production, By Weight
Russia takes the top spot as the world’s largest rough diamond producer, mining close to 42 million carats in 2022, well ahead of its peers.
Russia’s large lead over second-place Botswana (24.8 million carats) and third-ranked Canada (16.2 million carats) indicates that the country’s diamond production is circumventing sanctions due to the difficulties in tracing a diamond’s origin.
Here’s a quick breakdown of rough diamond production in the world.
Rank | Country | Rough Diamond Production (Carats) |
---|---|---|
1 | 🇷🇺 Russia | 41,923,910 |
2 | 🇧🇼 Botswana | 24,752,967 |
3 | 🇨🇦 Canada | 16,249,218 |
4 | 🇨🇩 DRC | 9,908,998 |
5 | 🇿🇦 South Africa | 9,660,233 |
6 | 🇦🇴 Angola | 8,763,309 |
7 | 🇿🇼 Zimbabwe | 4,461,450 |
8 | 🇳🇦 Namibia | 2,054,227 |
9 | 🇱🇸 Lesotho | 727,737 |
10 | 🇸🇱 Sierra Leone | 688,970 |
11 | 🇹🇿 Tanzania | 375,533 |
12 | 🇧🇷 Brazil | 158,420 |
13 | 🇬🇳 Guinea | 128,771 |
14 | 🇨🇫 Central African Republic | 118,044 |
15 | 🇬🇾 Guyana | 83,382 |
16 | 🇬🇭 Ghana | 82,500 |
17 | 🇱🇷 Liberia | 52,165 |
18 | 🇨🇮 Cote D'Ivoire | 3,904 |
19 | 🇨🇬 Republic of Congo | 3,534 |
20 | 🇨🇲 Cameroon | 2,431 |
21 | 🇻🇪 Venezuela | 1,665 |
22 | 🇲🇱 Mali | 92 |
Total | 120,201,460 |
Note: South Africa’s figures are estimated.
As with most other resources, (oil, gold, uranium), rough diamond production is distributed unequally. The top 10 rough diamond producing countries by weight account for 99.2% of all rough diamonds mined in 2022.
Diamond Mining, by Country
However, higher carat mined doesn’t necessarily mean better value for the diamond. Other factors like the cut, color, and clarity also influence a diamond’s value.
Here’s a quick breakdown of diamond production by value (USD) in 2022.
Rank | Country | Rough Diamond Value (USD) |
---|---|---|
1 | 🇧🇼 Botswana | $4,975M |
2 | 🇷🇺 Russia | $3,553M |
3 | 🇦🇴 Angola | $1,965M |
4 | 🇨🇦 Canada | $1,877M |
5 | 🇿🇦 South Africa | $1,538M |
6 | 🇳🇦 Namibia | $1,234M |
7 | 🇿🇼 Zimbabwe | $424M |
8 | 🇱🇸 Lesotho | $314M |
9 | 🇸🇱 Sierra Leone | $143M |
10 | 🇹🇿 Tanzania | $110M |
11 | 🇨🇩 DRC | $65M |
12 | 🇧🇷 Brazil | $30M |
13 | 🇱🇷 Liberia | $18M |
14 | 🇨🇫 Central African Republic | $15M |
15 | 🇬🇾 Guyana | $14M |
16 | 🇬🇳 Guinea | $6M |
17 | 🇬🇭 Ghana | $3M |
18 | 🇨🇲 Cameroon | $0.25M |
19 | 🇨🇬 Republic of Congo | $0.20M |
20 | 🇨🇮 Cote D'Ivoire | $0.16M |
21 | 🇻🇪 Venezuela | $0.10M |
22 | 🇲🇱 Mali | $0.06M |
Total | $16,290M |
Note: South Africa’s figures are estimated. Furthermore, numbers have been rounded and may not sum to the total.
Thus, even though Botswana only produced 59% of Russia’s diamond weight in 2022, it had a trade value of nearly $5 billion, approximately 1.5 times higher than Russia’s for the same year.
Another example is Angola, which is ranked 6th in diamond production, but 3rd in diamond value.
Both countries (as well as South Africa, Canada, and Namibia) produce gem-quality rough diamonds versus countries like Russia and the DRC whose diamonds are produced mainly for industrial use.
Which Regions Produce the Most Diamonds in 2022?
Unsurprisingly, Africa is the largest rough diamond producing region, accounting for 51% of output by weight, and 66% by value.
Rank | Region | Share of Rough Diamond Production (%) | Share of Rough Diamond Value (%) |
---|---|---|---|
1 | Africa | 51.4% | 66.4% |
2 | Europe | 34.9% | 32.9% |
3 | North America | 13.5% | 52.8% |
4 | South America | 0.2% | 2.4% |
However diamond mining in Africa is a relatively recent phenomenon, fewer than 200 years old. Diamonds had been discovered—and prized—as far back as 2,000 years ago in India, later on spreading west to Egyptian pharaohs and the Roman Empire.
By the start of the 20th century, diamond production on a large scale took off: first in South Africa, and decades later in other African countries. In fact between 1889–1959, Africa produced 98% of the world’s diamonds.
And in the latter half of the 20th century, the term blood diamond evolved from diamonds mined in African conflict zones used to finance insurgency or crime.
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