Hedge Fund Strategy
“Hedge fund strategy” is a phrase representing the technique and analysis used by the money manager. As you would expect, every hedge fund manager has a different way of investing their client’s funds. Some may invest only in real estate, while others buy securities. The point to remember is, a hedge fund is a corporate structure which allows for the discretionary management of pooled funds. It’s never the structure that loses money, it’s the hedge fund strategies which either make or break it’s success.
In today’s hedge fund market, opportunities are scattered quite thin. High yield hedge fund strategies have failed recently in the equity markets, but with other alternative investments, they’ve actually prospered. For example, a smart hedge fund could invest in distressed real estate, and earn significant profit during this housing crisis. The real truth is, a hedge fund is nothing more than a corporate shell, keeping business simple and legal for its members. Though the name “hedge fund” may get bashed in the media at times, one bad apple can never ruin a bunch. Do yourself a favor, and discard the negative publicity. The wealthiest in the world are still investing in hedge funds, and if you want aggressive long term growth, maybe you should as well.
Remember, hedge funds are a corporate structure which can apply to any market or investment strategy. In recent years, some hedge funds have done great and some funds have gone insolvent. Despite the slow growth of the USA market, offshore hedge funds have continued to grow dramatically. With benefits like additional privacy, reduced taxes, less regulation and more, you can see why hedge fund managers have been moving offshore. In our opinion, the hedge fund market will continue to grow, but as regulation increases in the USA, most of the new funds will be structured offshore. For more great information, visit our Hedge Fund Category. It covers everything you want to know about hedge fund investing, and plenty more.