now browsing by category
Gareth Henry writes this article, discussing hedge funds as a whole and the current trends we have seen in them in the last year, as well as what to expect from them in the near future. The article begins by saying that hedge funds are increasing in popularity right now. Investors are still hungry for the businesses, and that appetite is only growing. Hedge fund allocations have skyrocketed to almost 3 trillion US dollars, and has risen from 12 percent to 28 percent in a single year, a veritable leap. According to Gareth Henry, hedge funds are currently on par with many of the more popular private equities on the market in fact, in terms of investor equity, hedge funds are a single percentile behind private equity, which is the top alternative asset class. Gareth Henry also states that hedge funds and have finally overcome brutal misconceptions that resulted from the financial crisis last decade. The appeal of hedge funds is the massive returns that investors can expect when the properly invest, but this comes along with a equivalent amount of risk. During the crisis, these risks resulted in massive losses in value for a large majority of funds. Read more about Gareth Henry at EverybodyWiki
Gareth Henry then goes into detail on the origin of hedge funds. Hedging is a gambling term, a practice that allows a person to wager on several different outcomes in an effort to win something, even though you lose on your other bets. The fund got its name from buying stocks and holding them for “long and short.” He then states that a hedge fund can be specialized in all classifications of finance, but only accredited investors with either a lot of money, a lot of knowledge or a lot of both.
Gareth Henry then goes on to describe the reasons why hedge funds are becoming popular again. Incredibly, hedge fund investors that stuck with their funds during the financial crisis have seen a rise of their combined assets to 3 trillion dollars. The current stock market in the United States, as well as the Federal Reserve’s targeting high interest rates have seen an explosion of confidence among investors.