Blog > Investment Strategies > Blog article: Investment Research: Are hedge funds worth it?
 | Email This Article Email This Article  | 

Investment Research: Are hedge funds worth it?

Posted May 13, 2008

“A typical hedge fund invests or goes long in stocks and other securities, and simultaneously bets against or shorts those overvalued securities. In theory, this means hedge funds are supposed to deliver an absolute return in all markets while protecting your capital.” — Eric Roseman

by Eric Roseman

Baltimore – (TFN): Hedge fund managers probably have one of the most profitable businesses on Wall Street and in London. In fact, hedge fund managers make so much that you might say hedge funds resemble con-jobs.

A typical hedge fund invests or goes long in stocks and other securities, and simultaneously bets against or shorts those overvalued securities. In theory, this means hedge funds are supposed to deliver an absolute return in all markets while protecting your capital. They’re also supposed to reduce your risk and hopefully, outpace stock benchmarks.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

From the comfort of you own home, learn the top investment strategies for protecting and growing your wealth during financial crisis, including…

  • The top 2 methods for guarding against post-election tax hikes
  • New opportunities for enhancing your security in the world’s best asset havens
  • The 5 best ways to pick up huge bargains in the wake of crashing global markets
  • 3 critical steps to protecting your savings against a plummeting dollar
  • The simplest, easiest and most effective ways to build a ‘Permanent Total Wealth Portfolio’ hedged against risk and poised for major profits
  • Plus much more…

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Investment Research: High fees, low performance

This strategy doesn’t come cheap. If you’re a hedge fund investor, you’re expected to fork over big bucks in management fees. And that’s not all. You could be subjected to 12-month lock-in periods (or more) and then hand over a 1% annual management fee and a slick 15% performance or incentive fee on new net profits. What a deal!

This pales in comparison to plain indexing or investing in an active mutual fund, that doesn’t lock-in your capital or charge obscene annual fees. Also, mutual funds rarely blow-up like some hedge funds…but hey, that’s not even worth mentioning right? Read on to learn more.

****Make sure you sign up for our free TFN News Feed for breaking news, special reports and new financial videos. You can pick your favorite reader . Or if you prefer, you can have or free daily email delivered to your inbox .


Related Articles


Posted by Eric Roseman · Filed Under Investment Strategies 

Comments