One of the top reasons that investors and financial advisors don’t invest in hedge funds is that they think they are too risky. As with any investment, there is a certain amount of risk associated with hedge funds and yes, the risk is greater than that of t-bills or government bonds. However, one could argue that the investment strategies of […]
Common Misconceptions About The Risk Associated With Hedge Funds
One of the top reasons that investors and financial advisors don’t invest in hedge funds is that they think they are too risky. As with any investment, there is a certain amount of risk associated with hedge funds and yes, the risk is greater than that of t-bills or government bonds. However, one could argue that the investment strategies of […]
Types of Hedge Funds
Within the investment industry, there are many different strategies that can be utilized in an attempt to get a greater return on the capital invested. As such, there are many different types of hedge funds with a diverse realm of investing styles. For the most part, all of the fund types fall into one of five categories or styles: macro, […]
Hedge Fund Performance & Management Fees
Hedge funds typically earn income through a variety of fee structures charged to their clients. These fees are not only meant to cover fund administrative and operating costs, but also to reward employees and managers for providing positive returns to investors. The most common and well-known hedge fund fee structure combines both management and performance-based fees. First, the “management” fee […]
Savings Accounts
Savings accounts are offered by banks, savings and loan associations, credit unions, building societies and mutual savings banks. Some savings accounts require funds to be kept on deposit for a minimum length of time, but most permit unlimited access to funds. In the US, Regulation D, 12 CFR 204.2(d)(2)] limits the withdrawals, payments, and transfers that a savings account may […]
Hedge Fund Insurance: A Good Investment?
Hedge Fund managers spend endless amounts of time and money analyzing and determining the appropriate investments to hedge risk in their portfolios. Can any manager afford to disregard the risks in their business? Originally set-up by Alfred Jones in 1949 to eliminate risk by holding long positions and short-selling other stocks, the Hedge Fund industry has mushroomed in size to […]
Think. Outsource. Trade. Investment Outsourcing for the Hedge Fund World
By Seth Berlin Thanks to globalization for adding another acronym to my already information-overloaded brain. This one is called “IRO” or Investment Research Outsourcing. Over the next five years it is an acronym you will hear again and again. IRO, loosely defined, is the offshoring of front-office work to a 3rd party provider. In this article, I will look at […]
Hedge Fund Jobs – Portfolio Manager
There are many positions within a hedge fund that contribute to its overall success or the lack there-of. But while every player may be integral, hedge funds are a lot like a football team. The failure or success ultimately will be placed on the coach…or in this case, the Portfolio Manager. The Portfolio Manager, or hedge fund manager as they […]
Hedge Fund Jobs – Quant
Quantitative analysts, or “quants” as they are referred to in the industry, are the brains behind complex hedge funds and the smooth talking managers who run them. Their main responsibility is to create complex trading strategies to work in securities markets around the globe. Since hedge funds may invest in anything and everything through an array of unique and unconventional […]
Hedge Fund Jobs – Analyst
Due to the usually large amount of assets that hedge funds manage, they are under intense pressure from investors to produce enviable returns. After all, the investor is paying hefty fees for the shrewdness and brilliance of the hedge fund manager. The investor is entrusting the manager with a substantial amount of capital and counting on him to produce results […]
Hedge Fund Jobs – Compliance Officer
In 2004, the Securities and Exchange Commission outlined a series of compliance requirements to be fulfilled by hedge fund advisors. A compliance department ensures that the employees are abiding by these rules set in place by the SEC, with the Chief Compliance Officer heading the task. Hedge funds have a few options. They may outsource this task to compliance professionals […]
Starting a Forex Hedge Fund
Market conditions have never been better for setting up a forex fund. The number of forex funds and corresponding investors has grown as a result of expanding customer markets. Therefore, traders interested in starting a forex fund (or managing customer accounts) should familiarize themselves with the legal landscape as they consider earning a living in this profitable retail industry. An […]
Starting an Offshore Fund
By Hannah M. Terhune, Esquire 2008©, hterhune@capitalmanagementservicesgroup.com Capital Management Services Group Many countries are competing against each other to provide the best playing field from a legal standpoint for private investment (hedge) funds. For a new, low budget offshore fund, Anguilla or the British Virgin Islands and not the Cayman Islands may well be the best choice. While many countries […]
Hedge Fund Due Diligence
Hedge funds are limited to a specific group of sophisticated investors mainly because they are thought to have more experience with markets and investing. However, hedge funds aren’t without risk. While you can’t control market conditions, you can control who you choose to handle your money. Weeding out the bad apples can be one of the most important aspects in […]
Largest Hedge Funds
While hedge funds are estimated to manage almost $3 trillion in assets, the top hedge funds are responsible for a large chunk of that number. In fact, the largest hedge funds manage about $1.6 trillion, more than half of total assets under management. Despite hedge funds losing a combined $24 billion in 2007, total assets grew over 30% from the […]
The Subprime Mortgage Crisis – What Happened
In 2007, it was impossible to turn on the news without hearing about one of two things. Britney Spears, or the subprime mortgage crisis. While both debacles got an equal share of press and public scrutiny, the subprime mortgage crisis is still reeking havoc on the economy, and so far, has cost banks upwards of $285 billion. It was the […]
