Posted on 03/03/2006 4:08:12 AM PST by Flavius
Edited on 03/03/2006 7:09:49 AM PST by Sidebar Moderator. [history]
Pressured by weak stock-market returns and greater competition for investors' money, a growing number of mutual funds are making use of investment strategies typically found in riskier hedge funds.
A number of major mutual-fund companies, including Allianz Global Investors, Julius Baer Holding AG's GAM subsidiary, and Alliance Capital Management's AllianceBernstein, have recently asked fund shareholders for permission to change the rules governing how they can invest to include a range of hedge-fund-like investment strategies. Some of the new techniques being adopted include making complex derivative trades, investing with borrowed money and short selling. (Short selling involves selling borrowed shares in order to profit from an expected price decline.) Even some conservative U.S. government bond funds are adding risk with more derivative strategies.
How many hedge funds these days actually hedge. Contemporary hedge fund tactics consist of taking a high risk for a small payoff. It works until it stops working.
well, there are plenty of hedge fund techniques,
there are some really great ones, ive use a few personally, and watched gains upwards of 26% per day , but can i do it every day certainly not , neither can they
i think much of their income is generated by the pyramid scheme, much easier to take income from rolling investment people (that have no idea where they are investing in) then to generate money on the market
last great hedge fund master i know of was Soros, i dont think he is much active now,
anywas, its awesome bubble to watch, its all a story, the markets are pretty much stagnant and they need new ways of generating funds,
the spiels is see we dont invest in those crazy tech stocks, we ahhm, hedge, and we cant tell you how, but if you give me 200k entry fee, ill make it go up 6% a year, so as long as i can take in 200k people every year more then, i loose, it should work , er it is working
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