Why invest in hedge funds?
For returns that don't simply follow the stock market: a good hedge fund aims to make money in falling markets too, which can steady a large portfolio. Investors also pay for access to managers they believe are unusually skilled.
The case against
- Fees: a share of profits plus a yearly fee takes a large part of the gains.
- Many funds fail to beat a simple index fund after fees.
- Money is locked up, and funds disclose little about what they do.
Without investing
Anyone can see a fund's US stock holdings in its 13F. Following the best stock pickers' ideas, with the delays and gaps that come with 13Fs, is what HedgeFollow is for.
Related pages: Top hedge funds Hedge Fund Tracker