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Flames89 · 03-23-2007, 07:53 PM

Hedge Funds are similar to normal Funds (like Fidelity) except they frequently deal with other instruments like derivatives and usually investors have a limit of around $100,000 to $500,000. They are hot lately because they have had good returns in the past - but this is more in the order of 20-40%.

There is a chance that his firm had 80% last year, but it is unlikely - and I am sure there is a website where you can see the results. However, in Hedge Funds, management get paid for the performance of the fund which means they can do VERY WELL.

Hedge Funds are not fool proof though. Look at Long Term Capital Management, a hedge fund set up by industry experts and mathematical geniuses: http://en.wikipedia.org/wiki/Long-Te...tal_Management

Or look at what happened to Amaranth last year.

03-23-2007, 07:53 PM	#3
Flames89 First Line Centre Join Date: Aug 2003 Location: Toronto, ON Exp:	Hedge Funds are similar to normal Funds (like Fidelity) except they frequently deal with other instruments like derivatives and usually investors have a limit of around $100,000 to $500,000. They are hot lately because they have had good returns in the past - but this is more in the order of 20-40%. There is a chance that his firm had 80% last year, but it is unlikely - and I am sure there is a website where you can see the results. However, in Hedge Funds, management get paid for the performance of the fund which means they can do VERY WELL. Hedge Funds are not fool proof though. Look at Long Term Capital Management, a hedge fund set up by industry experts and mathematical geniuses: http://en.wikipedia.org/wiki/Long-Te...tal_Management Or look at what happened to Amaranth last year.