Risks to Starting your Own Hedge Fund (Video)
This is a good report for hedge fund beginners, but like most media, it offers a negative perspective on hedge fund strategies. For your information, this was shot during the middle of the economic crisis, a time where everyone wanted to point fingers. As we all know “heavy lies the crown”, and the fact is, it’s no different in the hedge fund market.
Before we get to the video, let’s outline some key points to remember. Scroll down, and take a look!
Key Points of Hedge Fund Investment Video
1. Amaranth Hedge Fund Lost Most of its Money on Bad Natural Gas Trades Expecting Hurricanes to Raise Price
2. “Almost Anyone” Can Start a Hedge Fund Since Many Investors are Looking for High Yields and Hedge Funds can Deliver them
3. Reality of a Hedge Fund is that it’s an Unregulated Investment Fund which Pools Investor Money, They Don’t “Hedge” to Lower Risk in Every Case
4. Hedge Funds do Not Have Constraints but they Only Can Accept Money from Accredited Investors with 5M+ who are “Smart Enough” to take Risk
5. News Reporter would have Billions Under Management, if you had the Right Background, Economic Advisors, and Plan for the Hedge Fund you Could too
6. Hedge Fund’s Goal is to Provide Steady High Yields, “Don’t Rock the Boat” for their Investors, Long-term Growth Objective
7. Generally, Hedge Funds Invest in Several Different Markets so they are’nt Overexposed, Diversification is Essential
8. Bad Hedge Fund Managers Fail to Understand the “Black Swan Theory”, Just Because it Hasn’t Happened in the Market Doesn’t Mean it Won’t
9. All You Need is One Bad Month to Erase Years of High Yields if you’re Overconfident, Underestimating the Possibility of Rare Events (“Black Swan Theory”)
10. Even though it’s Easy to Start a Hedge Fund, it isn’t a Good Idea for Everyone, Have to be a Professional and Expert in the Investment Markets
In this video, they’ll focus on the risks of hedge fund management, but trust me, there a TONS of successful managers out there! To see how successful you can be as a hedge fund manager, click on the video “Billionaire Hedge Fund Managers”.
Scroll down, and press play. We hope you enjoy the video!
InsideTrade LLC Staff
Phone: (949) 444-2111