Why hedge funds are so attractive to investors?

[rmorse]

Is it right to think that hedge funds have a lower risk in comparison with mutual funds?

That is too general a statement when a hedge fund does not have to hedge. Some can be very risky and some can be all hedged. It depends on their strategy.

 

[OptionGuru]

I think of hedge funds as being for the rich and sophisticated investor.

 

[recession2016]

people obviously don't do their due diligence when giving money to a fund.....despite the fact that the vast majority of hedge funds under perform indices, despite the fact that by giving money to a fund they are risking a madoff type of scenario

i don't understand it

 

[Jamie J.]

I think of hedge funds as being for the rich and sophisticated investor.

Having in mind all the published posts, I consider that hedge funds are able to decide a lot of questions, and investors just follow the status of their accounts.

 

[rmorse]

These days hfunds typically run at/below S&P vol, though it varies by style-box. The industry's become more conservative, because of pension money.

Pension money in general will look for lower returns with less volatility to those returns.

I think of hedge funds as being for the rich and sophisticated investor.

Rich..yes...sophisticated, not always.

 

[debitspread]

people obviously don't do their due diligence when giving money to a fund.....despite the fact that the vast majority of hedge funds under perform indices, despite the fact that by giving money to a fund they are risking a madoff type of scenario. i don't understand it.

Everything except the last sentence is wrong!

 

[marketsurfer]

people obviously don't do their due diligence when giving money to a fund.....despite the fact that the vast majority of hedge funds under perform indices, despite the fact that by giving money to a fund they are risking a madoff type of scenario

i don't understand it

Dude, you are really lacking in knowledge-- Perhaps listening and learning would be a smart bet for you-- rather than spouting off and letting everyone know how little you know??

 

[marketsurfer]

That is too general a statement when a hedge fund does not have to hedge. Some can be very risky and some can all hedged. It depends on their strategy.

I like to think of hedge funds as a way to "hedge" your other holdings--- nothing to do with the internal strategy.

surf

 

[marketsurfer]

These days hfunds typically run at/below S&P vol, though it varies by style-box. The industry's become more conservative, because of pension money.

Hedge funds started out as the "anti-establishment" "anti-institutional" alternative. Unfortunately, the industry has become the institutionalized establishment.

Just like Rock N Roll was anti society during altamonte and woodstock, it is now a huge part of society--

Fortunately, there are still funds that are unique and outside of the established norms-- just like there are rock bands that society and establishment will never understand.

surf

 

[recession2016]

Everything except the last sentence is wrong!

Dude, you are really lacking in knowledge-- Perhaps listening and learning would be a smart bet for you-- rather than spouting off and letting everyone know how little you know??

of course the two village idiots (surf and his alt account debit) come here to attack me without providing any facts

hedge funds milk fees from suckers and blind sheep like surf try to defend this industry practice

how's it working out for investors of green light capital and pershing square? a monkey could do a better job picking investments