The viability of hedge funds as reliable retirement vehicles essay

About Healing the Breach: The assertion that money management is more about marketing then risk management is a bit disconcerting. We live in the era of radical capitalism.

The viability of hedge funds as reliable retirement vehicles essay

The Hurst Index Annexure 3: Nedcor Hedge Fund Review Annexure 4: I am grateful to Professor J.

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Nel for their assistance in the formulation of my questionnaire and survey data analysis without whose input a core feature of this work would not have been possible. I am especially grateful to all the professionals who took time out of very congested schedules to respond to my queries and to participate in my survey.

Finally, I would like to thank my family, friends and Reggie for their emotional, spiritual and financial support and for endorsing my decision to return to study further and follow my passion which spawned this work.

It is the objective of this study to establish that for either of these options to be attained, tangible improvement in both the quantity and quality of information disclosure from hedge funds and their intermediaries about their positions, strategies and exposures in a manner that would enable them to continue to provide the market efficiency-enhancing services that they currently offer.

After introducing all the key issues that have motivated this resolve, the study looks at the current regulatory environment and the challenges facing regulators such as the varying degrees of banking freedom offered by different states and jurisdictions.

Proposed changes to current legislation are also considered across several jurisdictions. The results from the local market field study set the platform for recommendations to be investigated in future studies in order to provide guidelines for the supervision of the hedge fund industry.

Na die bespreking van die sleutelkwessie, stel die studie ondersoek in na die huidige regulerende omgewing en die uitdagings wat reguleerders in die gesig staar, soos die wisselende grade van bankvryheid wat verskillende state en jurisdiksies bied.

Voorgenome veranderinge aan huidige wetgewing vir verskeie jurisdiksies word ook oorweeg. Risk Management is a puzzle Figure 3: The Efficient Frontier Figure 4: Correlation of hedge fund performance with the size of the fees charged Table 3: Fund of Funds investment requirements Table 4: Comparison of current vs.

Cross-tabulation of assets under management in South Africa Table 6: Cross-tabulation of whether quality should be improved per firm type Table 7: Communication more relevant to the investment decision of private investors Table 8: Communication more understandable to private investors Table 9: Q 9 Factors preferred by the respondents for inclusion in a standard prospectus Graph 9: Q 10 Setting of minimum hedge fund thresholds to make them more exclusive Graph Q 13 Restrictions on educating private investors Graph Q 15 Accommodation of differences in styles and strategies within a single benchmark Graph Q 19 Introduction of standardised risk measures Graph Fee structures should be improved in terms of aligning manager and investor objectives Graph Q 24 Mandatory participation in independent survey Graph Q 25 Retailization of hedge funds in the South African market Graph Are management skill levels different between hedge fund and fund of fund managers Graph Caldwell proposes that hedge funds are generally recognised as having been introduced to the world by journalist-turned-investment guru, Alfred Winslow Jones.

Extract of essay "Hedge Funds-who is the winner(literature review)"

Short-selling involves borrowing a security and selling it to another party in anticipation that the market price of the security will fall before the debt is due enabling the initial buyer to repurchase it - at a lower price- in the market.

Thus, the initial buyer i.

The viability of hedge funds as reliable retirement vehicles essay

Leverage is the process of investing with borrowed money as a means of amplifying potential gains. By establishing a portfolio consisting of stocks that would be rewarded in part when the market went up with those that would also be rewarded when the market went down; the fund was thus considered to be hedged as losses from one position would be used to offset against profits of the other position.Funds of hedge funds, which place their clients’ money with different hedge fund managers, will maintain 50 percent share of the institutional hedge-fund investments (Barr, ).

This, I guess, should put to rest the question of the viability of hedge funds being a reliable retirement vehicle. Free investors papers, essays, and research papers. Investors and Hedge Funds - Are hedge funds suitable for retail investors.

The viability of hedge funds as reliable retirement vehicles essay

One such post is Unraveling Retirement Strategies: Floor-and-Upside [1], from February 6, I've made a few changes to reflect my updated perspective and to incorporate some of the excellent reader comments that post attracted. Investment institutions are similar to commercial banks because they are financial intermediaries that raise funds and invest them in loans and securities.

Unlike commercial banks, investment institutions do not raise funds through deposits and they have access to a wider variety of investment assets than commercial banks. The vilification of hedge funds as investment vehicles is introduced and some of the issues are discussed with emphasis on those issues that influence or are influenced by disclosure requirements or lack thereof.

The selected issues for discussion include transparency; risk management; compensation fees; index surveys and fund of hedge . Accordingly, the side car fund should contain a provision by which, subject to applicable laws, the LPs in the side car expressly waive conflicts of interest between the GP and the LPs of both funds, taken together as a class, that have been approved by the advisory board of the lead fund.

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