Are Hedge Funds Right For You?
(ContentDesk) August 30, 2005 -- Hedge Funds have been a hot investment lately. Once reserved for the very wealthy, hedge funds now have minimum investments as small as $10,000. Should you jump on board the hedge fund bandwagon, or let this latest investment craze pass you by?Hedge funds are pools of private money that use specialized investment strategies in an attempt to earn greater returns for their investors. They can invest in just about anything in an attempt to make money. Usually, hedge fund strategies include the ability to short the market so they can profit by correctly timing market declines.Hedge funds have become popular because, historically, some have returned over 20% per year.
As a result, the number of hedge funds has grown dramatically the last few years. Many successful mutual fund managers have left fund companies and started their own hedge funds. Since hedge fund managers often receive as much as 20% of the gains, the managers can make a lot more money.Hedge funds are normally structured as a partnership or a limited liability company. As such, only ?accredited' investors can participate. An accredited investor is someone with over $1,000,000 in investable assets or an annual income over $200,000 per year.Not a lot of people fall into this category.
And Wall Street knew those high returns would be an easy sell to other investors. So they created a fund of hedge funds. Think of it as a mutual fund that invests in hedge funds. Voila, small investors now have access.Don't let the attraction of high returns tempt you into investing in a hedge fund or a fund of hedge funds. I believe they are unsuitable for almost every investor.
Here's why.First, those sky-high returns were achieved when there were a small number of hedge funds pursuing each strategy. Now there are so many hedge funds pursuing similar strategies, the returns aren't there. Worse, it's forcing managers to pursue even riskier strategies.It's like being at an auction. If you are the only one bidding you'll probably get a great deal. If you are one of a hundred different bidders there's not much chance of getting a bargain.
In fact, if you don't watch out you might even pay more than the item is worth. That's what has happened in the hedge fund world.Very few hedge funds have current returns anywhere near those stellar returns of the past. In fact, it's been reported that the majority of hedge funds have actually performed worse than the market indexes for much of this year. Some have even closed down and returned the money to their investors because they couldn't meet their objective.Hedge funds have very high costs. Whereas an expensive mutual fund might charge a 1.5% management fee per year, the typical hedge fund charges 2%.
Plus, the hedge fund manager will typically take 20% of any gains. It's even worse with a fund of hedge funds because there is an additional layer of fees. You take the risk, they take the reward.Hedge funds and funds of hedge funds have little regulation and even less disclosure. The potential for fraud is high and transparency is low. Investors are trusting someone they don't know to handle their money and will have little idea what they are doing with it.
Big money investors get info the small investor can't.Most hedge funds require that you remain invested for a set period of time?say 1 year. If investors start withdrawing their money, it may force the manager to sell investments at a loss, harming the investors that remain.Since hedge funds with long histories of stellar returns are closed to new investors, you'll have to take a chance on managers with little or no experience in the Wild West world of hedge fund investing.Lastly, for those who must have alternative strategies, there are many options to short the market or to get double the market return through mutual funds offered by Rydex and Profunds. These mutual funds are transparent, regulated and much, much less expensive. Even so, they still aren't for the faint of heart!So I recommend investors let the hedge fund bandwagon pass them by.Have a financial question? Send me an email and I'll personally respond, free of charge. Go to www.guardingyourwealth.com and click on ?Ask Jeff'.In addition to being a nationally syndicated columnist and Certified Financial Planning Practitioner, Mr.
Voudrie provides personal, private money management services to clients nationwide.Looking for an energetic expert who is passionate about financial and wealth management?
Mr. Voudrie is an excellent speaker who will excite and inspire your audience.
Mr. Voudrie is available for a limited number of speaking engagements, television appearances and radio talk shows.
For booking information, email e-mail protected from spam bots.Related Articles can be found at www.guardingyourwealth.com under the Guarding Your Wealth Article Archive..
Interview with a #1 Ranked Hedge Fund Manager; International Balanced Multi-Strategy Asset Class
(ContentDesk) September 19, 2005 -- The 'mature' traders strike back: Hedge fund managers seem to get younger from year to year. At the other side of the spectrum you may come across a firm like Triumph. Triumph presently has 19 traders whose average age is 52 years. They are mature, successful and experienced traders with an average of more than 26 years experience in the markets. What happens if they get together to form a multi-strategy hedge fund?The following is an interview with James S.
Moore, Managing Member of TIF Fund Management LLC, the Managing Member of Triumph Investment Master Fund Ltd. (Currently ranked among the top performing International Balanced Multi-Strategy Asset class by Nelson's World's Best Money Managers for 20 and 40 quarter time frames). Interview Questions Include the Following:How does Triumph Fund differ from other hedge funds?Where are hedge funds heading?How did you get started in Hedge Funds?What do you think are the current challenges to hedge...
Interview with a #1 Ranked Hedge Fund Manager; International Balanced Multi-Strategy Asset Class
Hedge funds > Interview with a #1 Ranked Hedge Fund Manager; International Balanced Multi-Strategy Asset Class
A Hedge for the Children
"Isn't that beautiful corn in those people's front yard?" I asked."I will not have corn growing in my front yard," said my husband."Corn is a handsome plant. It gives a lush, tropical air.""I will not have corn growing in my front yard."So we didn't have corn the next year. Our back yard was shaded, except for one part, and I had decided to grow roses there instead of corn.The year after that I returned to the argument: "What if we planted corn in the side yard? It gets lots of sun.""I will not have corn in my front yard.""This wouldn't be the front yard. It would be the side yard. And you remember how delicious corn tastes when you pick it five minutes before you cook it?"He thought about how delicious corn tastes.
"I guess the side yard isn't the front yard," he said. "Okay. You can grow corn in the side yard.""And I'll plant a hedge out front so people can't see the corn as they drive by.""That's even better."So I began to plan a hedge. We had many children in our Virginia...
A Hedge for the Children
Hedge funds > A Hedge for the Children
Hedge Fund Advertising
HEDGE FUND ADVERTISING Have you seen all those big full page adsfor hedge funds in the Wall Street Journal, theFinancial Times, Investors Business Daily? Youhaven't. Maybe they are being drowned out by theregular mutual funds who continually tell youhow great they are. Shucks! I forgot. Hedge funds are not allowed to advertise. I wonder why.
Maybe they thinkthat their potential customers are too dumb toknow that hedge funds are a poor investment. Could be. The Securities and Exchange Commissionis trying to protect investors ? I think? To be able to buy into a hedge fund thesmallest investor must have a net worth of$1,000,000 and an income of more than $200,000per year. Maybe the SEC doesn't think thesefolks are bright enough to know a good thingwhen they see it. There are other groups that are major investors with the hedge funds.
Literally billionsof dollars are invested by university endowments,charitable trusts, state and corporate pensionplans. Could it be that they...
Hedge Fund Advertising
Hedge funds > Hedge Fund Advertising
Hedge Fund Advertising
HEDGE FUND ADVERTISING Have you seen all those big full page adsfor hedge funds in the Wall Street Journal, theFinancial Times, Investors Business Daily? Youhaven't. Maybe they are being drowned out by theregular mutual funds who continually tell youhow great they are. Shucks! I forgot. Hedge funds are not allowed to advertise. I wonder why.
Maybe they thinkthat their potential customers are too dumb toknow that hedge funds are a poor investment. Could be. The Securities and Exchange Commissionis trying to protect investors ? I think? To be able to buy into a hedge fund thesmallest investor must have a net worth of$1,000,000 and an income of more than $200,000per year. Maybe the SEC doesn't think thesefolks are bright enough to know a good thingwhen they see it. There are other groups that are major investors with the hedge funds.
Literally billionsof dollars are invested by university endowments,charitable trusts, state and corporate pensionplans. Could it be that they...
Hedge Fund Advertising
Hedge funds > Hedge Fund Advertising
Institutional Investing Forum Addresses the Evolution in Hedge Fund Investing
Washington, D.C. (ContentDesk via ContentDesk Direct) November 8, 2005 -- In its second successful year, the National Strategic Investment Dialogue convened in San Francisco on October 20 to discuss the challenges and complexities associated with successfully harnessing the power of hedge funds to maximize returns and reduce key areas of risk. The invitation-only sessions are part of a national initiative sponsored by Strategic Investment Group to promote candid, meaningful discussions among fiduciaries and leaders of the investment community on issues of vital importance to institutional investors. Participants have included a wide range of respected institutional investors, investment managers, investment advisors, academics, and regulatory experts. Hilda Ochoa-Brillembourg, President and CEO of Strategic Investment Group, says, We are proud to sponsor this effort to examine and debate important economic, financial and investment issues....
Institutional Investing Forum Addresses the Evolution in Hedge Fund Investing
Hedge funds > Institutional Investing Forum Addresses the Evolution in Hedge Fund Investing
Emerging Market Exchange Traded Funds Doing Well
San Francisco, CA (ContentDesk) February 18, 2006 -- If you look at the leading 10 Exchange Traded Funds so far this year, you will see many of these funds are Emerging Market Funds. In general these funds are doing better then US Funds.In spite of there strong performance, all Emerging Market Funds are not the same. You need to see what the underlying Equities are that make up these funds, and then look for trends.The Foreign ETFs that are invested more in manufacturing are doing the best in this area now. This is a shift from what we have seen in the past. The Emerging market ETFs that previously have had the best performance were those that have invested in companies that income was based on commodities, especially oil.Two of the leading emerging market exchange traded funds are iShares MSCI Brazil (EWZ) and iShares FTSE.XINHUA China 25 Index Fund (FXI).
These funds are doing well and institutional investors are still showing confidence in these ETFs. This is a trend that has...
Emerging Market Exchange Traded Funds Doing Well
Hedge funds > Emerging Market Exchange Traded Funds Doing Well
Beastie Boutique - Pet Pampering
The Boutique is continually growing and is always seeking out the newest fashionable products to pamper pets, including, collars and leads, beds, armoires, apparel, feeding dishes and additional breed specific items. Gourmet gift baskets for dogs and cats are available as well. The purchasing department has sought out distinctive gift items to create a memorable gift in which the consumer can purchase as corporate gifts or give to family and friends. You can either order a basket listed on-line...
Hedge funds Beastie Boutique - Pet Pampering
Hedge funds > Beastie Boutique - Pet Pampering
Dog training tip - Leash/collar training
When you're learning about something new, it's easy to feel overwhelmed by the sheer amount of relevant information available. This informative article should help you focus on the central points.
There are many different styles of dog training, and finding the one that works best for you is important for creating a dog that is a talented, loyal and faithful member of the family. All successful methods of dog training work to reinforce the relationship between dog and handler...
Hedge funds > Dog training tip - Leash/collar training
Chemical Manufacturer Improves Power Quality with S&C's PureWave UPS System
An ethylene manufacturer in Bahia Blanca, Argentina, chose S&C Electric Company's PureWave UPS? System to eliminate production interruptions due to power outages.Natural gas furnaces called "crackers" are used in the process of manufacturing ethylene. Within these crackers are fans and heating elements which control the temperature of the process. Power outages were stopping the fans, causing damage to the heating elements ? just one power outage caused thousands of dollars in lost production...
Hedge funds electric generator
Hedge funds > Chemical Manufacturer Improves Power Quality with S&C's PureWave UPS System
Fast Cash Payday Loans
As the name suggests, fast cash payday loans are small, short-term, unsecured loans that are available immediately and repaid on your next payday. These loans are taken for personal purposes and do not require any collateral or security deposits.
The tremendous growth in consumer spending has made these loans increasingly popular. People are living beyond their means, with little or no savings. Consequently, cash loans are among the most common resources to solve urgent financial...
Hedge funds > Fast Cash Payday Loans
Disfigured irises are effectively concealed with custom color contact lens technology from Adventures in Color.
(Golden, Colo.) - "It's amazing. I don't know why more people don't know about it," says Courtney Wacker, a Loveland, CO, accident victim, who benefited from hand-painted contact lens technology following a auto accident two years ago.Wacker suffered from double vision and a disfigured eye after emerging from a coma following the accident. She subsequently was fitted with a lens from Adventures in Color Technology. According to Wacker, the restoration of her normal vision and appearance brought...
Hedge funds
Hedge funds > Disfigured irises are effectively concealed with custom color contact lens technology from Adventures in Color.
Room Candy Inc. Announces the Launch of Poop Culture? Poop Tees, a Dog T-shirt Line With Funny Sayings Inspired By Doggy's Doo
San Marino, CA February 28, 2005 -? Pet lovers who know the messy business of cleaning up after their pets can now have a little laugh at the things they do for their beloved pets. Room Candy Inc. announced the formation of a new pet accessories label, poop culture?, a funny and light-hearted pet accessories line that is inspired by all things related to dog poop. After all, you can't spell "pooch" without "poo"!The launch collection from poop culture? features a line of Poop Tees ?a series...
Hedge funds
Hedge funds > Room Candy Inc. Announces the Launch of Poop Culture? Poop Tees, a Dog T-shirt Line With Funny Sayings Inspired By Doggy's Doo
Hedge funds
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