The Wild, Wild World Of Hedge Funds
Filed in archive Hedgetalk by Alex Akesson on April 10, 2007
*Hedge funds show no evidence of passing, making this the most unrestrained financial moment in recent history.
*Hedge funds dates back to Alfred Winslow Jones
and the fifties.*There are more than 9,000 hedge funds, 351 of which manage $1 billion or more.
*Quirk and the Bank of New York predicts that institutional assets in hedge funds could nearly triple by 2010.
*Hedge funds can employ whatever investing tools they want, including leverage, the use of derivatives like options and futures, and short sales.
*Practically all financial institutions use these "exotic" instruments.

Here's a funny psychological bit; "According to a survey of 294 fund managers with a net worth of over $30 million by Fortune's Fortress, 54% of hedge-fund managers say they suffer from the Icarus syndrome, a fear of flying too close to the sun and crashing to Earth. They also think about staring down the barrel of a gun: Almost three-quarters believe their wealth makes them a target of criminals and 97% see their portfolios as themselves personified."
*Running your own hedge fund is the fastest way to make a fortune known to man.
*It's harder to start a hedge fund now than it was a few years ago.
*Hedge funds are more nimble than traditional long-only funds and can swoop in and correct market mispricings before they can get extreme, decreasing the risk of collapse.
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