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Q: Why does the S&P 500 perform better than most hedge funds?
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How many hedge funds are there in CA?

There are over 360 hedge funds in California. You can find a list of hedge funds in CA at www.BAHedgeJobs.com Basically intended for job-seekers, but gives contact information for most hedge funds in CA including Los Angeles hedge funds and San Francisco hedge funds.


How many hedge funds based in CT?

As hedge funds are private companies, I doubt anyone can know for sure, but it is know that CT is a huge center for hedge funds, especially Greenwich and Stamford. The number changes literally by the month, but there are over 1,000 hedge funds in CT and they are as a group very well performing. Here more details on that. Actually there are far fewer than 1000. The larger number typically represents hedge fund companies that operate multiple funds. There are however several hundred including hedge funds and private equity firms. Most are located in Greenwich, Stamford and Westport. You can actually find a list at http://www.hedgefundjoblist.com


What schooling is required to become a hedge fund manager?

Because in most US states Hedge Funds are not regulated you generally do not need any licenses to manage a hedge fund. Due to the wide range of strategies hedge funds employ there is no set course or training session which can teach you want you need to know. A hedge fund that trades natural energy has a very different structure than a real estate or film fund.


How to get a job at a hedge fund?

The best way to get a job at a hedge fund is having some experience working at the most prominent investment banks on Wall Street. Besides that asset management experience would be very useful regardless of the place in which this experience was obtained. Having worked in exchanges, in the legal offices and other service providers that help hedge funds operate would also be useful as some hedge funds grow, they can transfer those function to be done internally. Also, hedge funds hire people from the regulatory side such as the Securities and Exchange Commission and the Fed, as they also provide expertise that is useful to them.


Is there a website that compiles stock research for the public?

Yes. The best place I have found, and use, is called Morningstar (http://www.morningstar.com/). They have research not just for stocks, but also mutual funds, hedge funds, and exchange funds. It is probably the most comprehensive and thorough site on the net.


Who are the winners in subprime mortgage crisis?

The winners are the hedge funds managers who shorted the mortgage securities, most notably John Paulson, and losers are American people.


Will under the hedge come out in 2011?

i think that most under the hedge


How can you find a job in a hedge fund?

You can join most hedge funds by sending your application and resume to them online; the popular ones are SAC Capital, Citadel Investment Group, D.E. Shaw & Co., Tudor Investment Corporation.


What is hedge funds?

Well there are a couple of different ways you could define it... 1. (a flexible investment company for a small number of large investors (usually the minimum investment is $1 million); can use high-risk techniques (not allowed for mutual funds) such as short-selling and heavy leveraging) 2. an investment fund open to a limited range of investors that is permitted by regulators to undertake a wider range of activities than other investment funds and also pays a performance fee too its investment manager . and more...


Does a Hedge Fund Manager's incentive compensation get paid only if the profits are realized and not just increases in appraised values that are not yet realized?

Here's a summary of what Wikipedia says about hedge funds. There's a lot more on their page (linked to the left). A hedge fund generally refers to a relatively unregulated investment fund, often a partnership rather than a corporation in form, and characterized by unconventional strategies (i.e., strategies other than investing long only in bonds, equities or money markets). While most of today's hedge funds still trade stocks both long and short, many do not trade stocks at all. For U.S.-based managers and investors, hedge funds are simply structured as limited partnerships or limited liability companies. The hedge fund manager is the general partner or manager and the investors are the limited partners or members. The funds are pooled together in the partnership or company and the general partner or manager makes all the investment decisions based on the strategy it outlined in the offering documents. In return for managing these funds, the hedge fund manager will receive a management fee and an incentive fee, with the management fee being a fee computed as a percentage of assets under management and the incentive fee computed as a percentage of profits of a "high water mark". The fee structures of hedge funds vary but typically the management fee ranges from 1-2% of the assets under management and an incentive fee that is usually 20% of the profits of the fund and can include "hurdles" or other items. Certain highly regarded managers demand higher fees. For example, Steven Cohen's SAC Capital Management charges a 50% incentive fee (but no management fee) and Jim Simon's Renaissance Technologies Corp. charges a 5% management fee and a 44% incentive fee. Offshore hedge funds are usually domiciled in a tax haven and are designed for U.S.-based hedge fund managers to manage the assets of foreign investors and tax exempt U.S. investors. In this structure, the manager will receive a management and incentive fee and will also be invested in the fund as an investment manager. The typical hedge fund asset management firm includes both the domestic U.S. hedge fund and the offshore hedge fund. This allows hedge fund managers to attract capital from all over the world. Both funds will trade 'Pari passu' based on the strategy outlined in the offering documents.


What does it take to start up a hedge fund?

Similar stock or commodity with oposing expected valuation. It takes a team, a marketing plan, seed capital, and operating capital. It takes a lot of capital and most hedge funds never grow into long-term viable businesses. Personally I believe that there will be hundreds of new hedge funds started every year for the next 7-10 years. Institutions are by and large increasing their allocations to these products and the surveys of the ultra-wealthy and high net worth financial advisers show a strong sense of confidence in increasingly using alternative assets within their portfolios. Soon I will start writing more often on exactly what financial advisers, family offices and institutions look for in hedge funds because if you work in the industry you will probably be interested in working for a hedge fund that is positioned for growth and if you invest in them I hope that you will contribute to the ongoing conversation here within this hedge fund blog and hopefully I will uncover at least one useful resource for you or your clients.


What is the most commonly used form of AI in the business arena?

I'd have to guess machine learning. Very big with hedge funds, who use it to detect patterns in newsfeeds, blogs, tweets, and buy or sell accordingly.