How Do Hedge Funds Make Their Profits? - hedge fund rating
I know it's probably a stupid question, but what I mean is, how and why that hedge funds earn a higher interest than other savings?
Thanks
Hedge Fund Rating How Do Hedge Funds Make Their Profits?
4 comments:
The term "hedge fund" is used in many ways, not only an answer to your question. First, hedge funds, private funds to "cover" the performance of its portfolio of "long" (risk reduction) to short positions in other parts of the market. Your income is the difference between the two gains or losses. Today, the term "hedge fund" will has come to too many funds that do not really cover their investments will be applied. In fact, applies to almost all private-equity fund that invests in the "long traditional" positions in stocks, bonds or other investments.
The term "hedge fund" is used in many ways, not only an answer to your question. First, hedge funds, private funds to "cover" the performance of its portfolio of "long" (risk reduction) to short positions in other parts of the market. Your income is the difference between the two gains or losses. Today, the term "hedge fund" will has come to too many funds that do not really cover their investments will be applied. In fact, applies to almost all private-equity fund that invests in the "long traditional" positions in stocks, bonds or other investments.
Like mutual funds, hedge fund investors in mutual funds and invest these funds in financial instruments that make in an effort to generate a positive return. Many hedge funds are trying out all sorts of markets through the introduction of design and other speculative investments practices that may increase the risk of loss of investment profit.
Unlike mutual funds, but hedge funds are not required to register with the SEC. Hedge funds in general issues of securities in "private placements" which are not registered with the SEC under the Securities Act of 1933. Moreover, hedge funds are not required to submit periodic reports under the Securities Exchange Act of 1934. But hedge funds are subject to the same prohibitions against fraud are other market participants and their managers have the same fiduciary duties as investment advisers
In order to take great risks with investors' money. Big risks could bring big profits but also losses.
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