Third Way Capital Markets Initiative
Bill Reeves is an active member of the Hawaii community who focuses on educational programs in the islands and serves on the Kamehameha School’s Investment Advisory Committee. Bill Reeves also has board responsibilities with the East West Center in Honolulu, Hawaii, and with the Third Way Capital Markets Initiative.
With a focus on sensible policies that span partisan political affiliations, the Third Way Capital Markets Initiative conducts in-depth research on everything from economics to health care. A recent article released by Third Way focused on a study that found that new U.S. businesses need improved access to capital to expand.
There are two primary business types, transformational and traditional, with the latter focused on well-defined strategic models in traditional sectors such as hospitality. While a majority fail, transformational companies are those that seek to innovate and disrupt their given sectors, often in ways that also improve people’s lives. Examples of such companies started during the past decade range from Dropbox to Solar City.
Unfortunately, the ranks of these types of businesses have thinned over the past few years. This has to do with a drying up of traditional consumer lending resources that the youngest startups rely on to gain a track record and attract further investment.
Unable to access the desired private capital markets, they must often rely solely on the equity of partners and family members, as well elusive angel investors. For a majority of the startups surveyed, these funds are not enough, and potentially game-changing products, services, and technologies get left in the pipeline.
Accomplished financial leader Bill Reeves of Hawaii serves as a partner at BlueMountain Capital Management. Prior to this, Hawaii’s Bill Reeves cofounded BlueCrest Capital Management, a New York-based hedge fund that grew to be the third-largest firm in Europe.
If you’re looking to invest in a hedge fund, there are hundreds to choose from, and each has its own unique characteristics, strategies, and returns. Start by considering your motivations for investing. If your primary goal is diversifying your portfolio, you may want to choose a different hedge fund than someone whose goal is high returns.
Make sure you get information about the type of assets the fund invests in along with its overall strategy and risks. If you do not understand a fund, it is best not to invest in it.
Choosing the right hedge fund also depends on the fund managers. Check to see whether the fund managers have invested in their own funds. While this is not always necessary, it can be a good indication that the managers will make careful investment decisions because they are strongly aligned with the fund’s success.
If this is not the case, look at the manager’s experience with hedge funds. Experienced managers often have a track record of consistent returns. Consider both the age and size of the hedge fund, and make sure you have the minimum investment requirements for the fund.
Cofounder of BlueCrest Capital Management, Ltd., Bill Reeves of Hawaii is an experienced financial leader. Having previously served as a trader for J.P. Morgan and Chase Company, Bill Reeves of Hawaii helped BlueCrest Capital Management become the third-biggest hedge fund firm in Europe with about $35 billion from institutional investors around the world.
In general, hedge funds share a few similarities with mutual funds. Hedge funds cannot engage in insider trading or commit fraud, but they are not regulated by any sort of federal or international organization. Hedge funds are not required to register with the Financial Industry Regulatory Authority or the U.S. Securities and Exchange Commission (SEC), but many funds still choose to register with these entities to give their investors peace of mind. In part, it is this lack of official regulation that allows hedge funds to have higher returns. Hedge fund managers have a much wider array of investment techniques available to them than traditional money managers.
Another trait of hedge funds is that they are illiquid. This essentially means that investing in a hedge fund is a long-term decision. In many cases, investors cannot remove money from the fund for at least two years. While this may be unsettling to some investors, hedge funds are typically managed by individuals who are extremely knowledgeable about the field. Plus, most hedge fund managers get bonuses based on how the fund performs, so they are incentivized to make good investment choices.
Open Water Swimming
A partner at BlueMountain Capital Management, Bill Reeves of Hawaii gained international recognition in the finance industry when he cofounded the New York-based hedge fund firm BlueCrest Capital Management. In his free time, Bill Reeves of Hawaii enjoys staying active through open water swimming.
Open water swimming can be unpredictable and more dangerous than pool swimming. Ideally, people who are learning to swim should not practice in open water. Doing so puts them more at risk getting swept underwater by a current and even drowning. Regardless of skill, open water swimmers should always check the weather and current conditions where they plan to swim. Strong currents can quickly take swimmers off track and into dangerous spots. Further, it is always a good idea to go swimming with at least one other person. This way, if there is an emergency, swimmers can help look out for each other to prevent major disasters.
Depending on the area in which a swimmer plans to go, learning about the local sea life can keep swimmers safe and calm. If sharks or jellyfish are common in an area, swimmers can be on the lookout to keep from getting bitten or stung. At a lake, swimmers should consider the level of bacteria in the water. Many areas close after rainstorms to protect against this, but if they do not, swimmers should be aware of the risk.
While all these minor safety points can decrease a swimmer’s risk, emergencies can still happen. To stay safe, swimmers should know how to handle certain currents, animal encounters, and any other situations they may experience.