Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Hedge Funds
Old 08-09-2012, 02:52 PM   #1
Thinks s/he gets paid by the post
Join Date: Jul 2003
Location: Pasadena CA
Posts: 2,674
Hedge Funds

I don't have any, have not figured out how to select one. Now this article at Seeking Alpha has convinced me that I don't have the resources, financial and analytical, to invest in them:

Why Investors Should Avoid Hedge Funds - Seeking Alpha

T.S. Eliot:
Old men ought to be explorers
yakers is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 08-09-2012, 03:02 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Chuckanut's Avatar
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 5,169
Interesting interview with Bob Brinker about 2 weeks ago with a guy who wrote a book on hedge funds. The Hedge fund Mirage by Simon Lack.

IIRC, Mr. Lack stated that in the last ten years a simple asset allocation of 60% total market index and 40% total bond index would have beaten most hedge funds every year, not just for the 10 years, but every individual year for the last 10 years.

Check this out for yourself. My memory could be faulty. And, of course, always do the due dilegence.

The worst decisions are usually made in times of anger and impatience.
Chuckanut is offline   Reply With Quote
Old 08-09-2012, 07:03 PM   #3
Thinks s/he gets paid by the post
Join Date: Sep 2009
Location: Hong Kong
Posts: 1,451
There would also appear to be considerable doubt as to whether they outperform mainstream asset classes. At the very least, I have never managed to get comfortable that there is anough reliable data to reach that conclusion: Do hedge funds outperform the market? - Quora

Even if they do outperform, it is possible that any outperformance is a result of taking on additional risk:

Also, most of the hedge funds which I might be able to access require me to invest an uncomfortably large percentage of my net worth and there have been no shortage of funds which have managed to destroy all or most of their investors' money.

I'll pass.
Budgeting is a skill practised by people who are bad at politics.
traineeinvestor is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


All times are GMT -6. The time now is 05:25 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.