|June 6, 2017||Posted by BLOGGER under BUSINESS|
You have read and heard a lot about hedge funds. Unfortunately, most of what you hear is negative because it comes from the important media who are interested in reporting negatively about them because the major media is supported by the so-called Standard mutual funds and brokerage firms that spend a lot of bucks for
Advertising. Hedge funds are not allowed to advertise.
First, a hedge fund is almost identical to a mutual fund. In fact, there are fewer complaints about hedge funds than about mutual funds. That does not mean they do not lose money as mutual funds do.
The inefficiency of mutual funds is not marked in the press; You do not bite the hand you eat. I'm talking about advertising revenue. Are Janus, Invesco, Vanguard or any fundraising family continuing to place ads with someone telling their lost fund story or asking investors to sell them to find a better actor? Is it Difficult.
Mutual funds used by customers & Money to buy stocks and bonds. Hedge funds are not just limited to what they can buy. It is possible to buy or sell short derivatives, commodities, options, oil and gas rentals, freight and even take the owner's money to the racetrack (though I doubt if they want to). The managers of these funds are experts in their field of knowledge and many do very well. Just because they are different does not make them bad. Like all investments you have to know where your money is and how it will be invested.
The only difference is how the fund manager is paid. Mutual fund managers are regularly paid for the amount of money that they manage and DO NOT do. Fund managers usually receive 1% of their investment fund assets and 20% of the profits they make to investors. In other words, if they do not make a profit for you, they will not get paid. I would definitely like to see them do it in regular mutual funds, but the Securities and Exchange Commission is the captive of the mutual fund industry, so do not hold your breath. The true ability of fund managers will be exposed and many funds will disappear as smart investors will transfer their money to fund managers who have won the records each year. Yes, every year. There is nothing nonsense about defeating S & P500 to 5% and still lose your money. So many articles about hedge funds say investors are being blamed for putting money into the fund.