How a Gang of Hedge Funders Strip-Mined Kentucky’s Public Pensions

Re:How a Gang of Hedge Funders Strip-Mined Kentucky’s Public... by dopamean on Monday October 22, 2018 @09:01AM (#18274244)

Don't BR ridiculous. There are lots of mutual funds that don't experience the swings that many hedge funds do.

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Re:How a Gang of Hedge Funders Strip-Mined Kentucky’s Public... by iflint on Monday October 22, 2018 @09:48AM (#18274593)

There are many hedge funds with much lower volatility than the average mutual fund. Hedge funds are not inherently more or less risky than mutual funds, they are just actively managed instead of passively managed.

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Re:How a Gang of Hedge Funders Strip-Mined Kentucky’s Public... by w1nst0nsm1th on Monday October 22, 2018 @05:55PM (#18278891)

It reminds me a story in rare no-nonsense books on stock trading about 90% people losing money or doing less than stock index because of trading fees while activelly managing it. The ability to make good money in stock markets is a rare talent and hedge funds only make hedge fund managers rich, most of the time.

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Re:How a Gang of Hedge Funders Strip-Mined Kentucky’s Public... by wbl on Monday October 22, 2018 @10:13AM (#18274788)

Mutual funds can be actively managed also. Hedge funds are a riskier investment: they are more opaque, can do more exotic things. But pension funds are sophisticated investors and should be able to make intelligent decisions about using them as part of a portfolio.

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Re:How a Gang of Hedge Funders Strip-Mined Kentucky’s Public... by pnutjam on Monday October 22, 2018 @02:27PM (#18277011)

You mispelled "full of fee's that suck out the value."

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Re:How a Gang of Hedge Funders Strip-Mined Kentucky’s Public... by zimablue on Monday October 22, 2018 @10:29AM (#18274920)

https://www.macrotrends.net/2324/sp-500-historical-chart-dat...

Maybe not over (specific) very short periods, but it depends on the mutual and it depends on the hedge fund. If you're saying pension funds should be locked in then you can't invest in anything that has exposure to equities, see: 2008, 1974, 1930.

I was just trying to nudge the post I was replying to into realisation that you either accept burning significant money to avoid risk or accept the chance of burning more money. This kind of "pensions should invest in the good guys who don't take risks..." well that's only govt bonds, and one day those will pop also.

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