They use crazy investment strategies that allow them to capture high returns in adverse general market conditions, but they rather under perform the general market in normal and booming conditions. “Hedge” is actually in their name for a reason. Rich people use hedge funds for…hedging.
They use crazy investment strategies that allow them to capture high returns in adverse general market conditions, but they rather under perform the general market in normal and booming conditions. “Hedge” is actually in their name for a reason. Rich people use hedge funds for…hedging.
Downside protection. Hedging. Giving you gains at the lowest beta possible.