Question

In: Finance

Use the Popularization of Hedge Funds discussion thread to discuss the impact that hedge funds had...

Use the Popularization of Hedge Funds discussion thread to discuss the impact that hedge funds had on institutional and wealthy investors.

What are hedge funds? Name 3-4 of most popular hedge funds in today’s market? What would you attribute the popularity of hedge funds to?

Solutions

Expert Solution

The hedge fund investments have increased to a large extent making more than $3 trillion contributed mainly the institutional investors. The institutional and wealthy investors are piling up their funds into the hedge funds. But at the same time, institutional investors have impacted with the high fees and the insignificant returns. Also, the risk and efforts involved are quite high as compared to other investments.

As per the latest survey of the Ernst & Young Global, the most of the institutional hedge fund investors intend to continue the current hedge fund allocation. The investors are now heading towards the customized hedge funds which have customized fees and liquidity terms.

Hedge fund is an alternate investment vehicle having a pool of underlying securities which is designed specifically for institutions and individual with significant assets.

The top hedge funds include:

  1. Bridgewater Associates.
  2. AQR Capital Management.
  3. JPMorgan Asset Management.
  4. Renaissance Technlogies.

The hedge funds became popular with time because of the following reasons;

  1. Need of the investors for consistent returns and low volatility.
  2. Outstanding performance of the managers.
  3. Protection of capital in difficult times.

Related Solutions

Use the GM’s Bankruptcy discussion thread to discuss the fall of the largest automobile manufacturer in...
Use the GM’s Bankruptcy discussion thread to discuss the fall of the largest automobile manufacturer in the United States. When GM declared bankruptcy what happened to their shares of common stock? Could you purchase shares of GM stock when they were in bankruptcy? What was their stock value prior to declaring bankruptcy and what is their stock trading at now that they are out of bankruptcy?
Discuss the article Do Hedge Funds Hedge in total. Use between 6 and 10 sentences. Penmanship...
Discuss the article Do Hedge Funds Hedge in total. Use between 6 and 10 sentences. Penmanship will have a significant effect on the grade. Organization and grammar will also count. Bullet points are not acceptable. The article is Do Hedge Funds Hedge? by Clifford Asness, Robert Krail and John Liew .
Use the Bond Maturity Dates discussion thread to discuss the advantages of having a maturity date...
Use the Bond Maturity Dates discussion thread to discuss the advantages of having a maturity date of 50 years or longer. What companies today offer 50 year bonds? List 3-4 companies and discuss why they offer these and what their specific advantage is with having such a lengthy bond maturity date? Is bankruptcy considered a real threat to those companies that offer 50 year bonds? Why?
Use the Commodity Boom discussion thread to discuss the recent commodity trends here in the United...
Use the Commodity Boom discussion thread to discuss the recent commodity trends here in the United States and throughout the world. Are commodities a good investment right now? What type of impact does a weak US dollar have on the commodity market? The price of wheat, oil, gas, and gold are all on the rise. What is the explanation of this and how do events around the world impact the commodities market here in the United States? As consumers, do...
Discuss whether hedge funds are good or bad for the liquidity of markets.
Discuss whether hedge funds are good or bad for the liquidity of markets.
Take any of the firms mentioned in the Modern Monopoly discussion thread and discuss the actual...
Take any of the firms mentioned in the Modern Monopoly discussion thread and discuss the actual competitive environment they compete in. The discussion can include information on market shares, but more importantly what are the true definitions of the markets and the list of competitors they face? How strong are these competitors? What creates advantages and disadvantages and how do these stack up? You should use the conditions necessary for Perfect Competition for a partial guide to this thread.
Hedge Funds Hedge funds have earned a reputation for making the most money in the time...
Hedge Funds Hedge funds have earned a reputation for making the most money in the time of crises. Search the news for some large recent returns by a hedge fund.   Describe the hedge fund, the returns, and how the fund has achieved them.
Hedge Funds:  What key characteristics and regulatory constraints distinguish Hedge Funds from other types of Mutual Funds?
Hedge Funds:  What key characteristics and regulatory constraints distinguish Hedge Funds from other types of Mutual Funds?
Section 3.6: Contrasting Hedge Funds Against Money Market Funds Explain how hedge funds differ from money...
Section 3.6: Contrasting Hedge Funds Against Money Market Funds Explain how hedge funds differ from money market funds.
What are the different categories of hedge funds?  
What are the different categories of hedge funds?  
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT