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What? No. Hedge funds are named for making highly risky investments. The short term risk of doing this is offset by hedging across markets and by using specifi
by DSingularity 8y ago
What? No. Hedge funds are named for making highly risky investments. The short term risk of doing this is offset by hedging across markets and by using specific investment products. Works great until events like the housing market cause a market wide collapse and kill your hedgefund.
Whoever concentrated the money in such funds was likely corrupt, otherwise grossly incompetent.
- mruts 8y agoDo you work in finance? That's just not true at all. Hedge funds are a very diverse group (see my above comment about how they are defined by compensation schemes nowadays and not strategies). The original idea of hedge funds was to provide low volatility (like bonds) and high returns (like equities).