Stock market what is Hedge Fund
The simple answer to what is a Hedge
Fund is that it is private equity funds which provide a hedge
against stock market conditions. The Hedge Fund is not simple
in practice. On a global basis there is over a trillion dollars
of private investment capital that can literally invest in any
commodity, currency indeses and stocks and bonds. Unlike
traditional investing the Hedge Fund may go long or short the
market. It is private equity and therefore the gains on
transactions for fund owners is taxed differently that normal
capital gains taxes.
Essentially the Hedge Fund is formed by individual investors
who have a stake in the fund. The buy-in is in the
millions. Noted Hedge Fund owners are George Soros and
the Blackstone Group founded by Peter G. Peterson and Stephen
The Blackstone Group is a fairy tale. The Blackstone
Group was founded by Peter G. Peterson and Stephen A.
Schwarsman. According to the Blackstone Group corporate
biography the iniital private funds in 1985 were
$400,000. By forging alliances and partnerships with some
of the most well-heeled on Wall Street their assets under
management are over 88.5 billion dollars.
The Blackstone Group is a world leader in alternative
investment strategies and investment counseling. A recent IPO
Blackstone Capital Partners raised an additional 21.7 billion
Hedge Funds are only a segment of the Blackstone Group
Investments. The Blackstone Group has a stellar Hedge Fund
management in the world market. Its group of Hedge Funds are
uniquely tailored for a variety of investment strategies and
goals. In fact the Blackstone Group can provide individualized
tailoring of a Hedge Fund to fit the needs of large investment
endowments and retirement funds. Anyone can purchase a unit of
stock in the Blackstone Group through a licensed stock broker.
It trades on the New York Stock Exchange under the stock ticker
Any discussion about Hedge Funds would not be complete
without mentioning the financial wizard George Soros. His
ability to sense movements in the market place is known
throughout the financial world. His Hedge Fund and
investment company is Quantum Fund. He senses weaknesses and
strengths as only a master financial investor/trader can. In
1992 his legendary move to short the British pound nearly broke
the Bank of London is part of the lore of George Soros. He can
play the upside or the downside of any market. Some may call it
a sixth sense, but it is an all encompassing ability to assess
with precision the reality of the market and stengths of the
underlying values with the reactions of the wild and crazy
speculator will do. It is this investor saavy that has placed
him in the Forbes wealthiest category.
There are thousands of Hedge Funds available in the various
market places. Lately some have not done as well due to
the roller coaster ride that has occured. This is the time when
the true test of a Hedge Fund manager is put to the test.
The average mutual fund holder or retirement beneficiary may be
surprised to learn that their funds are in part invested in low
risk Hedge Funds. The most successful endowment funds
have utilized the Hedge Fund investment to capitalize on market
movement and volitility.
The professional that manage these funds are lightning quick
and have the eccumen to know how and when to make grand plays.
Any one who does not possess these combinations of skill and
sixth sense does not last in the Hedge Fund for very
long. The old adage, "If you snooze, you lose," applies
to Hedge Funds.
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