So I'm looking to expand my portfolio a bit and get into hedge funds. Was hoping to hear from members, if any, that have experience with hedging and how to get started in the area, recommendations for funds to explore (large and smaller), etc. Any tips and/or insights are greatly appreciated. If there are any reputable/solid resources as well, I'd love to hear about them for learning more! Thank you in advance!
Getting into Hedge Funds
- Thread starter Sailorz
- Start date
U.S. market seems very expensive at the moment but who knows what will happen in the short term.
Warren Buffett Bet $1M He Could Outperform Hedge Funds Over A Decade. He Did It With A Strategy Requiring No Investing Skill
Back in 2007, Warren Buffett made a bold move. The legendary investor bet $1 million that a simple, no-frills S&P 500 index fund could beat a selection of hand-picked hedge funds over 10 years. Experts manage the hedge funds, and for that, they charge a layer of fees. Many see them as the...
finance.yahoo.com
do not get greedy
they grab up to 20% of profit and you put up all the money
they take huge risks as there is no downside for them
and they want a lot of your money for you to get in
crazy idea
they grab up to 20% of profit and you put up all the money
they take huge risks as there is no downside for them
and they want a lot of your money for you to get in
crazy idea
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Interesting! My understanding was that the incentives in the hedge fund business were more aligned (as compared to say employees at a bank) with that of outside investors (i.e. those managing the hedge fund usually have a large portion of their personal wealth in the fund, exposing themselves to the downsides just as much if not more than outside investors).
The original idea was to hedge your monies against market downturn by having some funds go short, a rather conservative play as it restricts upside, therefore the name Hedge Fund
but it has become a very wild ride as hedge funds are into all kinds of abstruse derivatives that mutual funds are not allowed to play as the government wants to protect naive investors and you cannot get out of it as they hold funds until redemption date and , to make things worse, hedge funds self-report their results
So, to protect investors, the government restricts hedge funds to the wealthy. However, a person’s economic status may demonstrate an ability to withstand losses, but it certainly does not demonstrate financial sophistication and they often lose their money assuming they are part of the elite club
with a superior investment team that the average person cannot get into, they are wrong.
the managers want 20% of profit and a 2% MER and you absorb all of loss
compare hedge funds results to the S&P 500 and the S&P 500 wins
While the the S&P 500 is a scary ride it is a pussy compared to hedge funds but you can amerliorate
risk with a fund of hedge funds
with one hedge fund you can lose it all while the the S&P 500 guarantees great results as it is a matter of time and an index fund is free at .1 % MER and they take none of your profit
If you want to expand your portfolio put your monies in the S&P
For a " reputable/solid resource" on hedge funds
refer to post 2
but it has become a very wild ride as hedge funds are into all kinds of abstruse derivatives that mutual funds are not allowed to play as the government wants to protect naive investors and you cannot get out of it as they hold funds until redemption date and , to make things worse, hedge funds self-report their results
So, to protect investors, the government restricts hedge funds to the wealthy. However, a person’s economic status may demonstrate an ability to withstand losses, but it certainly does not demonstrate financial sophistication and they often lose their money assuming they are part of the elite club
with a superior investment team that the average person cannot get into, they are wrong.
the managers want 20% of profit and a 2% MER and you absorb all of loss
compare hedge funds results to the S&P 500 and the S&P 500 wins
While the the S&P 500 is a scary ride it is a pussy compared to hedge funds but you can amerliorate
risk with a fund of hedge funds
with one hedge fund you can lose it all while the the S&P 500 guarantees great results as it is a matter of time and an index fund is free at .1 % MER and they take none of your profit
If you want to expand your portfolio put your monies in the S&P
For a " reputable/solid resource" on hedge funds
refer to post 2
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I belong to Morningstar.com and pulled these articles
Are Hedge Funds Now Worth Considering? | Morningstar
Why Mutual Funds Can't Be Hedge Funds | Morningstar
Will Hedge Funds Ever Recover? | Morningstar
What Hedge Funds Teach About Investment Management | Morningstar
Hedge Funds Look Slightly Better This Year | Morningstar
Are Hedge Funds Now Worth Considering? | Morningstar
Why Mutual Funds Can't Be Hedge Funds | Morningstar
Will Hedge Funds Ever Recover? | Morningstar
What Hedge Funds Teach About Investment Management | Morningstar
Hedge Funds Look Slightly Better This Year | Morningstar
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I think I read in TGAM in the last few weeks that ETF's that give exposure to hedge funds are set to debut, or are already on sale on exchanges.
My first thought was that was precisely the last thing the average retial investior needed, so I did not make more notice of it.
My first thought was that was precisely the last thing the average retial investior needed, so I did not make more notice of it.
