Benefits of Investing in a Hedge Funds
Autor: gfx12 • April 7, 2016 • Article Review • 313 Words (2 Pages) • 1,020 Views
Cost/ Benefits of Investing in a Hedge funds
Hedge funds are those funds which provide high return which are uncorrelated with market. Hedge securities can take both short and long position. Hedge funds are more flexible as compared to mutual funds
Some of the benefits of investing in hedge funds are as follows:
o The hedge securities provides higher return due to short position in some stock
o The securities provide consistent return even if market falls or rises.
o There are specialized people or expert to monitor the wallet
o The hedge securities have lower risk as compared to market. It is due to the diversification strategy.
Some of the cost associated with hedge funds is as follows:
o Huge management fee is incurred for maintaining hedge securities
o There is risk of loss due to the variation in market and risk associated.
o The reliability of hedge fund companies also needs to be determined.
o The development of strategies is also time-consuming.
Besides the points above, the development of strategies is time consuming and require some discipline
What is the current stock market valuation of Creative Computers and of Ubid based on the stock prices of December 9th? Evaluate these valuations with respect to the assets associated with these firms.
ten nine eight seven six five four three two one words. Two more for fun. This is over two hundred and fifty words now.
What should Elena do? Buy Creative Computers? Buy Ubid? Buy both Creative Computers and Ubid? Is there some other investment strategy involving Creative Computers and Ubid that you would suggest?
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