What Exactly Are Hedge Funds (And Why Are They Always Causing Problems)? - Deepstash
What Exactly Are Hedge Funds (And Why Are They Always Causing Problems)?

What Exactly Are Hedge Funds (And Why Are They Always Causing Problems)?

Curated from: The Plain Bagel

Ideas, facts & insights covering these topics:

1 idea

·

398 reads

4

Hedge Funds

Hedge Funds

... are investment vehicles which aims to hedge (aka minimize or eliminate) market risk. Some differences from traditional funds:

  • they are available to people with more than $1-5M
  • they are available to "accredited" investors, so they are less regulated
  • less regulation means they can invest in anything from stocks to Pokemon cards
  • they can also borrow a lot of money & bet against prices (shorting) 
  • they are quite expensive, charging a profit over a certain return threshold (hurdle rate)

Hedge funds have a bad rap for their unorthodox methods, but help keep prices in check for whole markets. 

37

398 reads

IDEAS CURATED BY

vladimir

Life-long learner. Passionate about leadership, entrepreneurship, philosophy, Buddhism & SF. Founder @deepstash.

Vladimir Oane's ideas are part of this journey:

Behavioral Economics, Explained

Learn more about economics with this collection

How to make rational decisions

The role of biases in decision-making

The impact of social norms on decision-making

Related collections

Similar ideas

Cathie Wood: Time To Sell Stocks?

2 ideas

Cathie Wood: Time To Sell Stocks?

Investing Made Simple - Nathan Sloan

Read & Learn

20x Faster

without
deepstash

with
deepstash

with

deepstash

Personalized microlearning

100+ Learning Journeys

Access to 200,000+ ideas

Access to the mobile app

Unlimited idea saving

Unlimited history

Unlimited listening to ideas

Downloading & offline access

Supercharge your mind with one idea per day

Enter your email and spend 1 minute every day to learn something new.

Email

I agree to receive email updates