What is a hedge fund



What is a hedge fund? #principles #raydalio #finance #hedgefund #shorts.

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30 Comments

  1. I like investing in close-end funds that pay monthly dividends. The trick is to hold long term and reinvest the monthly dividends plus buy more shares on a monthly basis or when ever you can afford to. This can be easily done because close-end funds are bought and sold on the stock market just like regular stock. That’d be enough to create a portfolio that would pay you between $50k to $70k in dividend income

  2. I think Ray meant to say a hedge fund is a type of investment vehicle that pools capital from accredited and institutional investors and invests in a variety of assets. The goal is to generate high returns, typically through more aggressive investment strategies than those employed by mutual funds or other typical investment vehicles.

  3. He did answer the question correctly, but it makes no sense to someone who has little knowledge of investing. It's like a kid can understand that an integral is a way of calculating the area under a curve. That kid is not going to understand if you start talking about derivatives in your explanation

  4. A hedge fund is a private investment fund that combines money from investors to invest in securities and other assets. The goal is to generate high returns.
    How do hedge funds work?
    Investment strategies
    Hedge funds can use a variety of strategies, including short selling, leveraging, and investing in high-risk assets.
    Risk
    Hedge funds can be riskier than mutual funds, which are more regulated by the SEC.
    Fees
    Hedge funds often charge a management fee and a performance fee.
    Redemption
    Hedge funds may limit when investors can redeem their shares, and may charge a redemption fee.
    **Who can invest in hedge funds?
    Hedge funds are typically only available to accredited investors, who meet certain financial or professional requirements.
    Hedge funds often require substantial initial investments, ranging from $100,000 to several million dollars.
    History of hedge funds
    Hedge funds first came into existence in the 1940s. They became more mainstream in recent times.

  5. If hedge funds hold long-term, it shows confidence, attracts more investors, and can drive stock prices up. Which of these stocks can i add to my 200 grand portfolio?

  6. A hedge fund is a pooled investment fund that uses various complex strategies, including leverage and short selling, to aim for high returns while managing risk.

  7. A fan of Ray so I'll answer it for him:

    A hedge fund is like a special kind of investment club for very wealthy people or big organizations. They put their money together, creating a big pot of cash. Then, they hire experts to make risky and creative investments with their money in hopes of earning big profits.

  8. To everyone saying this is a bad answer, this is actually a very concise and accurate explanation if you know a thing or two about finance. Perhaps it’s not very helpful if you have no background knowledge.

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