Discussion in 'Managed Funds & Index Funds' started by Simon Hampel, 4th Sep, 2008.
Lateline Business - 04/09/2008: Hedge fund leaders meet in Sydney
Lateline Business - 04-Sep-2008
Last place I would put my funds nowadays.
There's just too many of them now competing amongst each other so very few have an edge of any major degree. Of course like all funds some do well but do they do well consistantly and then there's the difficulty of choosing the best ones (other than in hindsight)!
The only thing I like about them is that they often drive down the share price in quality stocks during these bearish times allowing long term investors to pick up some bargains. But my opinion of many of them is low and so I have no sympathy when I see hedge funds going bust.
I had to smile at an analysts view of them I saw the other day. In a bull market most don't outperform the sharemarket and during a bear market plain old risk free cash will give a better return. So if you want a better performing alternative investment to stocks maybe try a high interest online cash account instead of hedge funds Haven't tried to verify this as they really aren't of interest to me. I much prefer to be drowning in dividends this time of year.
Cheers - Gordon
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