{"id":4796,"date":"2006-07-31T00:00:00","date_gmt":"2006-07-31T00:00:00","guid":{"rendered":""},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T04:00:00","slug":"hedge-funds-not-quite-so-glamorous","status":"publish","type":"post","link":"https:\/\/staging.hedgeco.net\/news\/07\/2006\/hedge-funds-not-quite-so-glamorous.html","title":{"rendered":"Hedge funds not quite so glamorous"},"content":{"rendered":"<p>  South Coast Today &#8211; <span class=\"TEXT\">These investments are too rich for my taste. Wealthy families often hire private money managers, pony up for hedge funds and set up a slew of trusts. And we  ordinary folks look on, figuring we&#8217;re missing out.<\/span><\/p>\n<p>  <span class=\"TEXT\">And, of course, we are missing out \u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u20ac\u009d on a fistful of costs that could wreak havoc with our investment returns. Feeling envious? Maybe you should feel sorry instead.<\/span><\/p>\n<p>  <span class=\"TEXT\">Hedging your bets: Among investment status symbols, nothing can quite rival hedge funds.<\/span><\/p>\n<p>  <span class=\"TEXT\">But this is a status symbol with an eye-popping price tag. A hedge fund might charge 1 percent or more of assets each year, while also taking 20 percent of all gains above a  specified level, such as the Treasury bill rate.<\/span><\/p>\n<p>  <span class=\"TEXT\">It&#8217;s even more costly if you buy funds of funds, which make money by investing in a range of hedge funds. These funds levy a second layer of fees, which might be 1 percent a  year, plus 10 percent of all profits above some target rate.<\/span><\/p>\n<p>  <span class=\"TEXT\">Hedge funds pursue a variety of exotic strategies, including trading currencies and commodities, employing leverage and shorting stocks in a bet they will fall in price. Result:  A hedge fund should perform quite differently from conventional stocks and bonds, thus reducing a portfolio&#8217;s overall risk level.<\/span><\/p>\n<p>  <span class=\"TEXT\">But star-struck small investors don&#8217;t swoon over the diversification benefits of hedge funds. Instead, they lust after outsized returns.<\/span> <a href=  \"http:\/\/www.southcoasttoday.com\/daily\/07-06\/07-30-06\/07business.htm\"><\/a><\/p>\n<p>  <a href=\"http:\/\/www.southcoasttoday.com\/daily\/07-06\/07-30-06\/07business.htm\">Read Complete Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>South Coast Today &#8211; These investments are too rich for my taste. Wealthy families often hire private money managers, pony up for hedge funds and set up a slew of trusts. And we ordinary folks look on, figuring we&#8217;re missing [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-4796","post","type-post","status-publish","format-standard","hentry","category-syndicated"],"_links":{"self":[{"href":"https:\/\/staging.hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/4796","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/staging.hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=4796"}],"version-history":[{"count":0,"href":"https:\/\/staging.hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/4796\/revisions"}],"wp:attachment":[{"href":"https:\/\/staging.hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=4796"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=4796"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=4796"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}