trader717

Risk Management in Trending Markets

Everyone else has already said, so I might as well too. Great article. Really should be used as a basis for how articles should be written on this site. Very informative and unbiased. I agree with much of what you have to say.

Another Hedge Fund Bites the Dust

why does it seem that those who complain most about hedge fund losses are those who do not invest in them? notsosmart is right, these institutions or individuals who invest in these funds know what they are getting into. Institutions do not invest 100% of their fund into hedge funds, rather maybe 20-30%, give or take for each specific one. That represents the more risky and speculative portion of their total portfolios.

Not to mention Devaney's half a billion is miniscule to our entire financial economy. That does not even dent the U.S.'s financial asset base. Why not talk about other funds as well, like Paulson & Co. generating 600% for some funds, which made billions for investors.

Volatility in the markets is needed. Markets trend, both up and down, bubbles are formed and pop. This is needed for our financial system to work. If volatile trends were not created in both directions, everyone could just put all their money into the market index, because it will go straight up forever in a straight line. CD's, money markets, savings accounts, would all be eliminated.