Why you should invest in Hedge Funds

[Jason Voorhees]

Why you should invest in S&P 500

I've this argument countless times from retarded niggers before. Why should I invest in S & P 500 when I can cherry pick the most profitable companies and earn larger profits? No S&P 500 are already weighted by market capitalization so you automatically invest more in those profitable companies...

looksmax.org

Why should you invest in hedge funds?

Main reason is higher profits and more diversification. In my previous thread I explained about index funds while they are good for long term growth if you want to beat the Market with higher returns and are willing to take more risk, hedge fund is your answer. Since many retards in my previous thread wanted proof calling everything jewish I will be talking about examples to justify my points wherever I can remember something relevant.


Why bother with hedge funds when index funds exist?

Because hedge funds are actively managed. In other words professional fund managers analyze market conditions, adjust portfolio to mmaximize your returns.

Hedge funds also use advanced algorithmic trading to make investment decisions. Hedge fund managers (atleast the good ones) take concentrated positions in a few key investments unlike index funds which spread risk across 500+ stocks this results in hedge fund beating market returns. Their goal isn't just to match the market's returns (like index funds) but to ggenerate xcess returns over the market average.
Example-Renaissance Technologies Medallion Fund one of the most successful hedge funds, delivered returns of over 30% by using quant trading strategies

Hedge funds also address one big flaw of index funds that is they rise and fall with the market. If the S&P 500 crashes so does your portfolio. Hedge funds one the other hand use various methods like Short Selling,Hedging with Derivatives to minimize this. I won't go into detail talking about what these things are since these can made into seperate threads itself but all you need to know is if the market goes down you can be assured that your portfolio will still somewhat be safe

Example: During the 2008 financial crisis, many hedge funds used short selling and hedging techniques to minimize losses while the S&P 500 fell to almost 50% iirc

Hedge funds also don't follow a single investment strategy. They are more complex and more diversified event driven and dynamic. The investments spread across different domains.

Hedge funds are also only available to accredited investors due to which they have exclusive access to certain investments like

Private Equity & Venture Capital - Investing in startups and private companies before they go public.

Distressed Debt - Buying discounted corporate bonds from companies in financial trouble and profiting if they recover.

Examples-Hedge funds invested heavily in early stage tech like Uber and Airbnb before they went public and secured massive profits

All this sounds good but are you ever going to invest in hedge funds? Probably no chance unless you are very rich. The initial investment itself for reputable hedge funds is probably like multiple times your net worth

Who Should Invest in Hedge Funds?

-I am a rich nigga and want to beat market-beating returns.

-I am an investor and want downside protection during bear markets.


Who Should Stick to Index Funds?

-I am a low IQ cel and don't understand any of this and want a hands free approach

-I am broke nigga and happy with market average returns

 

[glizzygnasher68]

tldr: jews

 

[Jason Voorhees]

@666PSL @FaceandBBC @Seth Walsh @Snowskinned @TechnoBoss @TheLightOfMyLife @klip11

 

[Shkreliii]

Tldr theyre jews with inside knowledge

 

[Jason Voorhees]

tldr: jews

Tldr theyre jews with inside knowledge

I wont bother going into detail from next time

 

[Jason Voorhees]

@Shahnameh @Chadeep @TheBiggestIncelEver @cucklek @deadstock @EthiopianMaxxer

 

[2025cel]

Da joos did zis

 

[Jason Voorhees]

@Bars @HostSamurai @motiascension @TheVoidInside

 

[cucklek]

i wouldnt invest in american shit at all rn tbh

 

[Jason Voorhees]

i wouldnt invest in american shit at all rn tbh

Aquila Capital and D.E Shaw on Bayer for german hedge funds

 

[Godera]

Where do i invest

 

[Jason Voorhees]

Where do i invest

Citadel

 

[gymcel64]

Do you actually think a single person on this forum has access to hedge funds? Even when you're giga rich it's extremely hard to get a good manager to take care of your money because of how restricted and gatekept it is.

 

[Jason Voorhees]

Do you actually think a single person on this forum has access to hedge funds? Even when you're giga rich it's extremely hard to get a good manager to take care of your money because of how restricted and gatekept it is.

True. You need to invest like 1-10Mill just to get in and for good hedge fund managers you need connections and referrals.

 

[Shahnameh]

We need a mega thread for a lot of the wealth maxxing tips plus all the remote jobs and stuff

 

[Jason Voorhees]

@fr0st

 

[fr0st]

Why you should invest in S&P 500

I've this argument countless times from retarded niggers before. Why should I invest in S & P 500 when I can cherry pick the most profitable companies and earn larger profits? No S&P 500 are already weighted by market capitalization so you automatically invest more in those profitable companies...

looksmax.org

Why should you invest in hedge funds?

Main reason is higher profits and more diversification. In my previous thread I explained about index funds while they are good for long term growth if you want to beat the Market with higher returns and are willing to take more risk, hedge fund is your answer. Since many retards in my previous thread wanted proof calling everything jewish I will be talking about examples to justify my points wherever I can remember something relevant.


Why bother with hedge funds when index funds exist?

Because hedge funds are actively managed. In other words professional fund managers analyze market conditions, adjust portfolio to mmaximize your returns.

Hedge funds also use advanced algorithmic trading to make investment decisions. Hedge fund managers (atleast the good ones) take concentrated positions in a few key investments unlike index funds which spread risk across 500+ stocks this results in hedge fund beating market returns. Their goal isn't just to match the market's returns (like index funds) but to ggenerate xcess returns over the market average.
Example-Renaissance Technologies Medallion Fund one of the most successful hedge funds, delivered returns of over 30% by using quant trading strategies

Hedge funds also address one big flaw of index funds that is they rise and fall with the market. If the S&P 500 crashes so does your portfolio. Hedge funds one the other hand use various methods like Short Selling,Hedging with Derivatives to minimize this. I won't go into detail talking about what these things are since these can made into seperate threads itself but all you need to know is if the market goes down you can be assured that your portfolio will still somewhat be safe

Example: During the 2008 financial crisis, many hedge funds used short selling and hedging techniques to minimize losses while the S&P 500 fell to almost 50% iirc

Hedge funds also don't follow a single investment strategy. They are more complex and more diversified event driven and dynamic. The investments spread across different domains.

Hedge funds are also only available to accredited investors due to which they have exclusive access to certain investments like

Private Equity & Venture Capital - Investing in startups and private companies before they go public.

Distressed Debt - Buying discounted corporate bonds from companies in financial trouble and profiting if they recover.

Examples-Hedge funds invested heavily in early stage tech like Uber and Airbnb before they went public and secured massive profits

All this sounds good but are you ever going to invest in hedge funds? Probably not chance unless you are very rich

Who Should Invest in Hedge Funds?

-I am a rich nigga and want to beat market-beating returns.

-I am an investor and want downside protection during bear markets.


Who Should Stick to Index Funds?

-I am a low IQ cel and don't understand any of this and want a hands free approach

-I am broke nigga and happy with market average returns

Important news for an unemployed NEET like me

 

[Jason Voorhees]

@Donquixote

 

[Jason Voorhees]

@moredatesmorerapes

 

[Jason Voorhees]

@Brus Wane

 

[john2]

The US stock market crashed recently and half my returns are gone. I am depressed.

I will look more into hedge funds now.

 

[Jason Voorhees]

The US stock market crashed recently and half my returns are gone. I am depressed.

I will look more into hedge funds now.

You need to have references and a high networth for a good hedge fund manager to handle your portfolio. most retail investors will never have access to top hedge funds. The best they can do is invest in hedge fund-like strategies through ETFs but those don't perform nearly as well.

 

[Brus Wane]

@Brus Wane

Didn't read the whole thing but hedge funds are definitely not for 90% of us

Only a handful give astronomical returns consistently while the other 80% struggle to keep up with the market

They only really shine during downturns because the fund managers will rush to short everything and then use the profits to buy shit when it's on the recovery (which you can learn to do yourself)

Anyway even if you have full faith in hedge funds, the barrier of entry is jacked up

You might need anywhere from 25 to 50 million in cash before someone will entertain you

My theory on why it's so popular among rich people is for a rarely talked about reason.....(I could be wrong though)
That shit is off the books (at least more than other "normal" assets)
It's not something that can be seized as easily in a corporate lawsuit or divorce like real estate, cars, watches or cash in the bank

If you hedge fund money is overseas, it's difficult (but not impossible) to be accessed by your local court

 

[Jason Voorhees]

Didn't read the whole thing but hedge funds are definitely not for 90% of us

Only a handful give astronomical returns consistently while the other 80% struggle to keep up with the market

They only really shine during downturns because the fund managers will rush to short everything and then use the profits to buy shit when it's on the recovery (which you can learn to do yourself)

Anyway even if you have full faith in hedge funds, the barrier of entry is jacked up

You might need anywhere from 25 to 50 million in cash before someone will entertain you

My theory on why it's so popular among rich people is for a rarely talked about reason.....(I could be wrong though)
That shit is off the books (at least more than other "normal" assets)
It's not something that can be seized as easily in a corporate lawsuit or divorce like real estate, cars, watches or cash in the bank

If you hedge fund money is overseas, it's difficult (but not impossible) to be accessed by your local court

Honestly very good points. Agreed hedge fund is not something for us low status broke niggas

 

[Bars]

I'm broke af so I'm choosing the index funds idc

 

[Seth Walsh]

Traditional Hedge Funds have no real alpha or diversification. Rip-off fee models, operational counterparty risk, and passthrough fees.

The idea of hedge funds is to get lowly correlated returns at low fees. Active management is always second to passive, ceteris paribus.

But if you want to invest in a hedge fund, the idea would be to invest for long term zero to negative equity correlation, in addition to primary equity holdings (via a low expense, tax efficient index vehicle).