what are hedge funds, /biz/?

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>>1822944
Well hedges don't stay trimmed on their own

>>1822944
People that use their reputation to make a killing in fees.

>>1822944
You have to be an accredited investor to invest in them because they do not have the same oversight from the SEC as mutual funds do.

>>1822944
They loan lots of money and then buy & sell financial assets in order to make a profit.

The distinction that makes it a "hedge" fund, is generally accepted to be the use of borrowed money (leverage) and the use of borrowing assets to sell (short-selling).

>>1822944
honestly idk what the fuck they are, i just think of phineas and ferb for some reason. also i think of a small sandy office with 3 billion operating margin.

>>1823395
>The distinction that makes it a "hedge" fund, is generally accepted to be the use of borrowed money (leverage) and the use of borrowing assets to sell (short-selling).

The distinction is that it has no oversight by the SEC and thus has very high risk. Therefore only accredited investors can invest with Hedge Funds (Certain networth, certain salary, or certain credentials).

>>1822944
Nobody really knows what hedge funds are. Basically just a bunch of rich fucks pooling together their money to make more money unaccounted for by the law.

>>1823427
>Nobody really knows what hedge funds are

https://www.khanacademy.org/economics-finance-domain/core-finance/investment-vehicles-tutorial/hedge-funds/v/hedge-funds-intro

>>1823430
>meme academy
So, basically rich fucks teaming up with other rich fucks to get even richer and fuckier. Like I mentioned in my earlier post.

>>1823436
Yes I guess if you overly simplify it and say basically nothing describing it you are totally and 100% correct.

You have correctly differentiated Hedge funds from mutual funds, by correctly discerning that it's "rich fucks" "teaming up with other rich fucks". How that exactly differs from other investment vehicles is not described by you though.

>>1823467
Except I described it exactly. Without citing and reading a brick wall from turbo Wikipedia.

>>1823491
Yeah but you didn't really mention any of the important parts of it.

Just saying "it's for rich *expletive* people to make more money" is kind of a retarded answer that says nothing, yet uses up space.

>>1822944

hedge funds are where any prospective investor should aspire to reach. fuck investment banking. fuck equity analysis. even fuck fund management.

hedge funds are the ultimate no holds bar lets make a fuckton of money.

its just a group of people that band together and try to make money in any possible way they find. they are not beholden to shitty regulation and they are not judged in comparison to an index. they would mass invest in teletubbies if they see potential for high return

they typically do better vs the market in down cycles because they are more alert to market trend and usually have the skill to hedge against recessions.

most hedge funds fail. most underperform vs the market.

my goal is to go into hedge fund, make bank, then just invest for myself living a humble shitposting life off my savings.

>>1823549
Why not just go all in on bitcoin instead.

>>1823536
tips fedora