Choosing the Right Hedge Fund

Hedge Fund pic

Hedge Fund
Image: investopedia.com

A partner at BlueMountain Capital Management, Bill Reeves of Hawaii has spent nearly two decades as an executive in the finance industry. Bill Reeves of Hawaii served as the head of macro strategy and trading at JP Morgan and co-founded BlueCrest Capital Management, a New York-based hedge fund that grew into the third-biggest hedge fund firm in Europe.

As investors look for the right hedge fund, they need to consider the minimum investment that each hedge fund needs. Most hedge funds are designed for high-net-worth individuals or institutions, so the minimum investment is usually quite high. If an investor cannot afford a minimum investment, they may be better suited for a different hedge fund. Further, investors must look at the overall goal of a hedge fund. Even if the fund is affordable, it may not share the same goals as the investors. Hedge funds’ primary goal is to make money; however, some have a more aggressive growth strategy that involves higher risk while others work to keep investors’ money safe through low-risk investments.

Once an investor finds a hedge fund that meshes with their goals and financial situation, they can start looking more into the fund’s management and performance. When evaluating a fund’s performance, investors should look at its recent returns and past return history. Investors should be cautious of funds with good returns in recent years and a history of sub-par returns. It is possible that a better strategy was adopted in recent years or, alternately, it may also be possible that a fund has just gotten lucky. Assessing the manager is often a simple way of determining a fund’s true path to success. Hedge fund managers should be qualified to handle their investors’ money and have a solid background in investments.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s