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Friday, November 7, 2014

Hedge fund investment is unnecessary because it is riddled with problems!

Speaking from the conclusion, it is absolutely unnecessary to ordinary people is to invest in hedge funds.

First, the hedge fund that ordinary people can invest, only it can be said that there is no fund that does not deserve to invest. Hedge funds originally, is to asset management to undertake a large amount of money from a small number of large-millionaire. Even if to the operation of the same 10 billion yen, and and the keep one by one billion yen from 10 people, and than keep one ten million yen from 1000 people, because the cost of customer support is too difference.

In the fund of operation, do not you let the Ikagani middle cancellation will be a problem. Since the cancellation is to sell the stock if it is necessary to make the cash, because the cost and time-consuming. So originally fund manager who treats the funds together of millionaire as much as possible, I do not want to partner such as retail customers. Of that hedge fund that will correspond to small guests, rather than kind, it is because have not been to the other party from wealthy bastards.

When the former Murakami fund world by storm, but has been rumored that it is not possible to invest and no minimum of 100 million yen, it's the correct strategy for the management side to provide a minimum amount limit.

The hedge fund is not suitable to large principle of investment called "Do not invest in things you do not understand what is". Is the strategy of the hedge fund "market neutral" to hear that such "long short", do you not understand?

World of investor = Warren Buffett, also in the 1990s that had been boiled in IT bubble, the IT-related stocks did not invest at all. But of that "what the do not know what company that's to be" was the reason, for the IT bubble burst after, also by Buffett grades continued higher than the market average, prove that this idea was correct is doing.

The hedge fund is a high cost of the problem than the normal investment trust. Many funds in particular provide a "success fee" in addition to trust fees, as well as achieved if higher yields, so when that is reduced to investors is taken around 20% as a success fee, investors are much profitable that I often do not.

And, although you also can have also been published, such as the average return of hedge funds in the United States, this number may problem that actually appear to be higher than.

Since the results are hedge funds can not be decent operation in succession outflows bad, is located immediately to the trend that fund is dissolved. And if you want to do it on the fund manager who is it established a new fund, who was re-starting is because it is convenient in a state in which reset the negative results table.

Thus the average return of hedge funds, it is calculated only in excellent fund that survived, because bad funds are excluded of the disbanded performance, I become overvalued number than the entity. So even though the average return of hedge funds is high, and its numerical value is the thin credibility. Let alone in the fund that can invest the general public not a millionaire, because I is likely to be bastards fund suffering to collect funds, that it does not deserve to longer investment It is obvious.

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