Re:The Impact of Index Investing: A Follow-Up
by matt_wulfeck on Wednesday May 04, 2016 @10:59AM
(#11628795)
I hear this mentioned "hedge funds are for downturns" but why is it that hedges were getting demolished going into 2016? If they really do better in downturns then I would have expected better performance from hedge funds as a whole.
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Re:The Impact of Index Investing: A Follow-Up
by roymurdock on Wednesday May 04, 2016 @11:05AM
(#11628832)
The term "hedge fund" doesn't really mean anything anymore. It's just an actively managed portfolio with a lower AUM on average than a mutual fund, the legal option to take on more risk, and a certain fee structure. There are a few main investing "disciplines" or "strategies" [1] that each fund manager tends to subscribe to, but it's impossible to talk about them intelligently as a group as they all make wildly diverse bets on different assets across the globe.
[1] See figure 3: https://wealth.barclays.com/wealth-management/en_us/home/tho...