3 ms·
They don't define their terms. > Hedge Fund > A hedge fund is a limited partnership of private investors whose money is pooled and managed by professional fun
by smarm52 2y ago
They don't define their terms.
> Hedge Fund
> A hedge fund is a limited partnership of private investors whose money is pooled and managed by professional fund managers. [1]
> Private capital / equity
> Private equity describes investment partnerships that buy and manage companies before selling them.
> Private equity is often grouped with venture capital and hedge funds as an alternative investment.
Then, interestingly, they've been more fashionable lately:
> The private equity industry has grown rapidly amid increased allocations to alternative investments and following private equity funds' relatively strong returns since 2000.
Which might explain why working at public companies has been so crappy for the past several years.
But the best bit comes from this article [3]:
> One hedge fund manager currently trying to raise capital said investors often cited the lack of distributions they had received from their private equity investments as a reason why they would not invest.
They won't invest in a safer bet, because they got burned by a bad one. Amazing. No wonder it's so easy to make money investing for people/orgs with money if this the behaviour you can expect from them. Is it really as simple as: "Hey I heard this was a good investment, give me money."? If that's an example of the simple-minded thought process that investors go through, it must be so simple to earn money this way.
[1] https://www.investopedia.com/terms/h/hedgefund.asp https://www.investopedia.com/terms/h/hedgefund.asp
[2] https://www.investopedia.com/terms/p/privateequity.asp https://www.investopedia.com/terms/p/privateequity.asp
[3] https://www.ft.com/content/62b1db7b-3e78-47ca-865e-02cc404915f0 https://www.ft.com/content/62b1db7b-3e78-47ca-865e-02cc40491...
- tomatocracy 2y agoIt's not that potential investors (in funds) have been burned so much as that the lack of distributions means they either don't have the liquidity to spare or they are up against limits as to what percentage of investments they want to hold in alternatives/illiquid investments.