60 minutes watching Tiger Woods-Now very interested in a Hedge Fund**Anyone with knowlege of hedge Funds here?

[swolenole]

looks like a cool way to stack some cheese.

 

[MattTheSkywalker]

most hedge funds lose money.

Tiger earns ~$100M per year, so he has some opportunity to diversify his portfolio beyond what is available to most people....he can handle the risk.

 

[sawastea]

Most HF's also require you to open an acct with some cheese. Not like $10K, more like 1mm. Some don't, but most do.

 

[MattTheSkywalker]

What sawastea and I are saying is that

(1) hedge funds are expensive and

(2) likely to lose money

So don't bother.

If you insist, almost any fund that is not closed will allow you to invest with an annual income of $250K+ and/or a net worth of over $1M.

I strongly recommend against it unless you know the managers well. I have zero dollars in hedge funds.

 

[Devastation]

the average return for all hedge funds in the US last year was around 8.6% so most do NOT lose money

however the minimum investment on most hedge funds is anywhere from $50,000 to $250,000. if it is a large fund they will require you to have at least $1million in net assets to even be considered a "sophisticated" investor, which is what hedgies are supposed to be geared for

you can invest in what's called a fund of funds, or one fund that has some distribution ratio of several OTHER hedge funds it is invested in. you are reducing some risk by spreading your money among several different funds this way, but you also diminish your chances of any truely stellar performance from any one fund in particular

the minimum investment will keep the vast majority of investors away although there are over 8000 hedge funds in the US right now

 

[swolenole]

good info guys...I'm in the only can afford 10-20K a year to investments catagory...looks like it is out of my reach..

 

[Devastation]

some fund of funds have a minimum investment of $10,000 if you are dead set on investing in some type of hedge fund vehicle

 

[swolenole]

some fund of funds have a minimum investment of $10,000 if you are dead set on investing in some type of hedge fund vehicle

Thanks bro

 

[Lestat]

lol @ this thread.

so the 60 minutes had TWO stories, one on a hedge fund vs a company..

the other story was on tiger woods

I doubt tiger woods has his money in hedge funds, but the point is, that is not what the 60 minutes was about.

and most hedge funds DO MAKE MONEY, they are mostly un regulated and carry so much weight that just taking a position usually moves a stock down.

The 60 minutes piece showed that they typically get actively involved in proliferating negative propaganda about companies they are shorting.

 

[swolenole]

lol @ this thread.

so the 60 minutes had TWO stories, one on a hedge fund vs a company..

the other story was on tiger woods

I doubt tiger woods has his money in hedge funds, but the point is, that is not what the 60 minutes was about.

and most hedge funds DO MAKE MONEY, they are mostly un regulated and carry so much weight that just taking a position usually moves a stock down.

The 60 minutes piece showed that they typically get actively involved in proliferating negative propaganda about companies they are shorting.

I would think that Tiger has a very diverse portfolio...Best aI could tell he made roughly 186 million last year in tour earnings & endorsements..