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Hedge funds aren't really private investments, you're probably thinking of Private Equity firms. Hedge funds more often than not invest in the public markets an
by govg 5y ago
Hedge funds aren't really private investments, you're probably thinking of Private Equity firms. Hedge funds more often than not invest in the public markets and hold large positions, the difference between a mutual fund and a hedge fund is more regulatory and legal than investment process.
- mbesto 5y agoAFAIK hedge funds are basically anything you want them to be. You could be hedging public equities, shorting them all, going long on them all, or investing in crypto. I could be wrong but its basically a catch-all term now.
- caminante 5y agoThe parent is responding to the grandparent comment > Generally hedge funds are private investments. I take your point that HFs come in many flavors. And, "private investments" is ambiguous. Though, in "general", the parent is right to say the claim (above) is not accurate. I think of HFs as "generally" playing with securitized, public assets, regardless of investment mandate.
- govg 5y agoYup, you're right. Nowadays a "hedge" fund is simply some entity that manages money and dabbles in the dark arts to generate outlandish returns (or collapses in a spectacular fashion). I was just refuting the initial assertion that hedge funds make private investments, since most of the traditional "hedge funds" don't touch private markets, and work in public markets.