I may be having a senior moment regarding finance but I would be grateful if someone could explain in basic layman's language what "Hedge Funds" are. I can see and understand the principles behind short selling but not hedge funds.
Hedge Funds
- Thread starter colin(bridgend)
- Start date
Hi Colin
They are not in the Yellow Pages. TYhey are smart arses making money on gambles with others money ( in the main).
Mike Ashley of Newcastle United has this week lost
They are not in the Yellow Pages. TYhey are smart arses making money on gambles with others money ( in the main).
Mike Ashley of Newcastle United has this week lost
Isn't the term "Hedge Fund" derived from "Hedging your bets" and I believe that "Short selling etc" is their stock-in-trade. i.e. That's what they do! or "Gamblers"
Hedge Funds are not all about short selling. Hedge Fund Managers use a variety of trading styles to achieve returns for their investors of which short selling is just one. The objective of most Hedge Fund Managers is to achieve an investment return that is better than cash & bonds but without the downside risks of holding the actual equities themselves.
Hedge Fund Managers are used by major Pension Schemes at part of the diversification of investment strategy in the same way as property, gilts etc.
Whilst their are undoubtedly some Hedge Fund Managers that have concentrated their efforts on short selling we must be careful not to say that the existence of hedge funds is the sole cause of the current woes.
Alun
Hedge Fund Managers are used by major Pension Schemes at part of the diversification of investment strategy in the same way as property, gilts etc.
Whilst their are undoubtedly some Hedge Fund Managers that have concentrated their efforts on short selling we must be careful not to say that the existence of hedge funds is the sole cause of the current woes.
Alun
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