??? 
can someone break it down real simple..thanks
can someone break it down real simple..thanks
Can we talk about HEDGE FUNDS and is it possible for WORKING CLASS PEOPLE to create one
- Thread starter KENNY DA COOKER
- Start date
Forgot the 'C' in 'Class'
Anyways, I think Hedge Funds are becoming less popular as they pretty consistently underperform the industry benchmarks. If you just invested your money in the S&P500 Index, you are much more likely to make more money than if you invest in a hedge fund.
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I think the hard part about hedge funds is that A) You have to convince people to give you money. B) You have to outperform the smartest minds in the world consistently in order to just come close to matching an Index Fund.
Anyways, I think Hedge Funds are becoming less popular as they pretty consistently underperform the industry benchmarks. If you just invested your money in the S&P500 Index, you are much more likely to make more money than if you invest in a hedge fund.
Source: Subscribe to read
I think the hard part about hedge funds is that A) You have to convince people to give you money. B) You have to outperform the smartest minds in the world consistently in order to just come close to matching an Index Fund.
Forgot the 'C' in 'Class'
Anyways, I think Hedge Funds are becoming less popular as they pretty consistently underperform the industry benchmarks. If you just invested your money in the S&P500 Index, you are much more likely to make more money than if you invest in a hedge fund.
Source: Subscribe to read
I think the hard part about hedge funds is that A) You have to convince people to give you money. B) You have to outperform the smartest minds in the world consistently in order to just come close to matching an Index Fund.
thats what im getting at i have a small business that pushes an array of products.....
i have two investors who fund me without questioning what i place thier funds in
is that technically a HEDGE FUND?!?
Nope. Operating a Hedge Funds would required you to register as an investment advisor, register your company, register with the IRS, etc.thats what im getting at i have a small business that pushes an array of products.....
i have two investors who fund me without questioning what i place thier funds in
is that technically a HEDGE FUND?!?
How to Start a Hedge Fund
When getting people to give you money is the EASY part of the equation, I'd reevaluate whether it is a road you want to go down.
Okay minus the regulations and IRS oversight
what im asking is WHAT IM DOING TECHNICALLY IN PRINCIPLE A HEDGE FUND?
Naw, that's a silent partnershipthats what im getting at i have a small business that pushes an array of products.....
i have two investors who fund me without questioning what i place thier funds in
is that technically a HEDGE FUND?!?
I think we need to crawl before we run. Black people would do well just to get in the habit of budgeting, saving and passively investing. Hedge funds are for multi millionaires and shyt.
DrBanneker
Space is the Place
thats what im getting at i have a small business that pushes an array of products.....
i have two investors who fund me without questioning what i place thier funds in
is that technically a HEDGE FUND?!?
No, you are technically an investment manager/financial advisor. Hedge funds promise (though rarely deliver) above average returns through complex trading strategies and usually require a minimum $1M investment and have a fee structure of 2% of money under management and 20% of all returns. The term 'hedge' comes from the types of strategies like hybrid long/short strategies where long positions are hedged by shorts and vice versa. They aren't the invest for the long haul or value investor types usually.
???
can someone break it down real simple..thanks
Private equity is better... and easier to do at a small scale ...
Pretty easy to pool 6-7 figures together and buy a business
but not everyone is great at client acquisition to boost profits
or improving efficiency in a company...to cut opex
The working class already have their pension funds in Hedge Funds....
MalikX
Superstar
Hedge funds are basically casinos
Private equity and Venture capital >>>>>
Private equity and Venture capital >>>>>
FluffyCorleone
Banned
thats what im getting at i have a small business that pushes an array of products.....
i have two investors who fund me without questioning what i place thier funds in
is that technically a HEDGE FUND?!?
............................???
You dudes don't know what you're talking about. Hedge funds are genius. You're just splitting the bill. So a group of people can buy a million shares easier than one person. Simple. It's group economics with stock.jilla82
Veteran
This.
plus...OP, this is something you could easily google..
...like, just type in "what is a hedge fund"
I'm not an expert, but from what I researched this is the right track.
Let's say you collect 1 Mill.
You can use that 1 mill and margin out another 4 mill, for 5 mill total.
So, if you gain 20% for the year, instead of gaining 200k on 1 Mill. You gain 1 Mill on the 5 Mill.
Your clients would get their normal returns based on what they put in, but you would get your returns based on the 5 Mill, plus fees from what your clients put in.
When you Win you WIN, but when you lose you fukking LOSE.
Last year a manager down here placed a bet on oil prices I think, but the Winter was warmer than he expected.
The oil prices never shot up and he lost pretty much all of his clients money. He fukked up so bad, that brokerage's were sending notices to his clients that they owned the brokerages money.
When margins call, its hell.
You could create one after you finished paying the 75 to 100k to form it.
There is a law that states you can bring in 15 people that dont have a net worth of million dollars into the fund but that's it. Not even sure that 15 is the right number think its 12 people.
Or you could create a boutique hedge fund for cheaper but can't manage anyone money expect for yours.
Ex- Hedge fund Portfolio Manager.
There is a law that states you can bring in 15 people that dont have a net worth of million dollars into the fund but that's it. Not even sure that 15 is the right number think its 12 people.
Or you could create a boutique hedge fund for cheaper but can't manage anyone money expect for yours.
Ex- Hedge fund Portfolio Manager.