A different kind of hedge fund is called “fund of funds”. This fund also accumulates money from investors just like other hedge funds. However, the operations of this fund are not similar to other hedge funds. This is because the investing strategy of this fund is passive. This means tha...
‘Lock up’ refers to the period of time new investors must wait before they are allowed to invest in the fund. It describes the lack of liquidity in hedge funds. From the risk/return perspective, however, this is not necessarily bad for investors, as the freedom of time gives the profes...
Your fund managers will aim to sell those stocks for more money than they bought them for. All this buying and selling means growth funds tend to come with higher fees. They can make investors more money, sometimes pretty quickly, but are vulnerable to poor bets and the whims of the ...
Bond funds Bond funds are the most common type of fixed-income mutual funds, where (as the name suggests) investors are paid a fixed amount back on their initial investment. Bond funds are the second most popular mutual fund type, accounting for about one of every five funds on the market...
Institutional investorsHoldings informativenessStock pickingMarket timingWe examine the informativeness of quarterly disclosed portfolio holdings across four institutional investor types: hedge funds, mutual funds, pension funds and private banking firms. Overweight positions outperform underweight positions only for...
Should we treat capital investments differently or all the same? More specifically, should we encourage certain types of capital investments? Why? What are some of the ramifications of our decisions? There are several ways that mutual funds can generate returns for...
Speculators are able to register large gains or equally huge losses and usually belong to the group of high net investors, who strive at diversification of their investment portfolios. They always pursue profit maximization within a short term. Example For example, if a speculator believes the ...
For more insights on how to choose mutual funds, read"Selecting Mutual Funds." What's the difference between active and index funds? There are differences between these funds but they are really two sides of the same investing coin, and many investors use both types in their portfolios. ...
A hedge fund is an investment type that is distinct from mutual funds or ETFs. This fund is an actively managed fund made available to accredited investors. A hedge fund faces less federal regulation and is therefore able to invest in a variety of asset classes using a wide range of strateg...
Private equity enables companies to raise capital without going public. Hedge funds and private equity were typically only available to affluent investors deemed "accredited investors" who met certain income and net worth requirements. However, in recent years, alternative investments have been introduced...