Similarities between the Private equity and hedge funds
- they are very risky
-they both invest outside the stock market
-you can get a fund of private equity companies as well as a fund of hedge funds thereby "diversifying" risk
-they both take an amazing 20% ( or more) of profit and 0% of the loss therefore their incentive is to take risks, that alone is a huge red flag ( meanwhile you put up 100% of risk capitol)
-they both claim to spend lots of money on research but why bother when you can echo other successful private equity firms? I would suspect a lot do
-you are constantly worrying about your risky investment, is constant worry worth it?
- they are very risky
-they both invest outside the stock market
-you can get a fund of private equity companies as well as a fund of hedge funds thereby "diversifying" risk
-they both take an amazing 20% ( or more) of profit and 0% of the loss therefore their incentive is to take risks, that alone is a huge red flag ( meanwhile you put up 100% of risk capitol)
-they both claim to spend lots of money on research but why bother when you can echo other successful private equity firms? I would suspect a lot do
-you are constantly worrying about your risky investment, is constant worry worth it?
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