What are hedge funds ?

Amazon FBNinja+
Jun 9 8 Comments

I’m new to investing. Did watch few YouTube videos on the topic but would love to know in layman’s terms.

Do you invest in them ? Are they the unicorns of investing ?

Another Q: is Berkshire Hathaway a hedge fund ?

How are sigma and jane ST related with these

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TOP 8 Comments
  • New / Other
    DuQvV7y

    New Other

    BIO
    Did stuff. Hustled hard. Retired
    DuQvV7ymore
    What is a hedge fund?
    Actively managed fund open to a small set of rich individuals to invest in financial instruments with a goal of making tons of money.

    Do you invest in them ?
    You don’t. Invite only (mostly).

    Are they the unicorns of investing ?
    WTH does this even mean?

    Is Berkshire Hathaway a hedge fund ?
    No

    How are sigma and jane ST related with these
    Two Sigma = Hedge Fund
    Jane Street = Prop Trading
    Jun 9 0
  • Thrivent Financial Finnn
    A hedge fund uses alternative investments to try and consistently earn positive return, but not necessarily beat the market. Think high fee, low liquidity. Only accredited investors may apply, and is most odten used to diversify risk on a large asset base.
    Low interest rates and high equity growth has made it hard for them to be successful. They use derivatives to hedge their large bets, hence the name.

    Brk is just a conglomerate, and is not at all similar. Maybe once upon a time hedge funds were thought of as unicorns, and they may be again one day when the high market volatility comes back.
    Jun 9 0
  • New / Eng n o s q l
    Vehicles for insider trading.
    Jun 9 1
    • New / Other
      DuQvV7y

      New Other

      BIO
      Did stuff. Hustled hard. Retired
      DuQvV7ymore
      Only sure way to beat the market
      Jun 9
  • Hedge funds are almost always sophisticated investment firms compared
    Jun 9 1
    • New / Other
      DuQvV7y

      New Other

      BIO
      Did stuff. Hustled hard. Retired
      DuQvV7ymore
      The sophistication is implied, and often a misnomer

      There are lots of hedge funds that are practically boiler room schemes.
      Jun 9
  • Walmart.com / IT malwart
    In even simpler terms: Hedge funds are mutual funds for super rich people. Not everyone gets to invest through hedge funds. Good for markets where interest rates are much lower and allow the super rich investors to diversify their assets through choices in the commodities they want to invest. Again these are much complicated than that.
    Jun 9 0
  • Amazon amaholic
    You don’t invest in them but with them.
    Jun 9 0