I read in Business Weekly that pension funds, university endowments, and other big investors invest in hedge funds and private equity funds. An accompanying graph shows that private equity funds had much higher returns than hedge funds in 2006 and 2007, but also greater losses in 2008. What is the difference between the two? Do they invest in different products? If not, on what base would a pension fund choose whether to invest in one or the other? Thank you!
Is it correct, that the essential differences are that hedge funds can use many different derivatives and arbitrage strategies and mutual funds don't?? And of course that you have to invest much more in a hedge fund than with others - i know that.
I am interested in hedge funds. I know a little about them. I am wondering how they are able to tap into 10x or 20x leverage situations. What bank is willing to lend them this much credit to make their trades? Don't the banks want collateral in returns? What is the financial relationship a bank has with a hedge fund that promotes or has promoted this type of extreme leverage?
Market watch reported Hedge Funds are getting ready for another Greek Budget standoff in a few weeks. So what do these Funds do to make money of these crisis .
I want to know if investing money into hedge funds is a way you can trade options without doing all the work yourself and leaving it to a proffessional such as a fund manager to make you the money?
Also, can investing into hedge funds make you wealthy?
I was reading about hedge funds online and the author of the blog says he got out of the hedge fund business because of the regulations, which sounded strange to me. Besides the SEC who else can regulate hedge funds?
