Help in choosing hedgefunds in which to invest

LuckyGirl · Jul 16, 2008

Quote from tcm66:

Not to rain on your parade, but here's a big "heads up": If you are seeking to invest in a package of hedge funds --- to generate positive investment returns not correlated with the broad market (S&P, etc.), be very aware that you will be attempting to accomplish something that a large number of extremely knowledgeable and superbly-equipped professionals worldwide also seek, and have had very poor results for years now. These professionals are managers of "funds of hedge funds", and their net returns have been in the mid-to-low single digits for a long time now. Worse, some have suffered big losses for their investors in the past nine months, as some of their formerly "hot hedge funds" have blown up.

If you really want to pursue your stated investment strategy, you will have to do much, much more than read a book or two, or talk with an "alternative investments" packager. Otherwise, you are just shark bait.

There is a huge amount of free relevant info on the Internet, and even more if you advance to the point of wanting to purchase worthwhile data and research from various reputable sources.

Just recognize at this time that many very sophisticated investors have gotten creamed by their hedge fund investments in the past year. If you want even a chance of doing better, be prepared to do a lot of serious research --- and a lot of serious thinking. Good luck.
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I am feeling a bit like shark bait to be frank. I should let you guys know that I live in Canada and would not feel comfortable handing over money without visiting the office in person at this point in time. (Thank you to those of you that took the time to email me though).

Iâve got the âRocking Wall Streetâ book on order, checked out www.hedgefund.net and tcm66, your admonitions have motivated me to sign up for the Gold Access to www.canadianhedgewatch.com. I have to admit that I was ready to jump in without taking the time to research properly. Thanks.

LuckyGirl · Jul 16, 2008

Quote from sophiekay:

Lucky,

Sounds as if you are freaking out just because you are down. You have only been trading a few months it should be expected. If your real dream is to manage your own money. I would not give up in just a few months.

When I first started to trade, I took a few thousand dollars and my goal was to loose every penny. Make every mistake in the book so that I could learn.

Here's an idea. Take a portion of your portfolio and give it to a Hedge Fund manager. Take another portion and actively manage it yourself. I guaranteee you that you will come out ahead of the manager 70% of the time.

Good luck.
sophie
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Sophie, thanks for the encouragement. I'm not accustomed to failure, and I'm not giving up just yet, but it's within the realm of possibility that I'm not cut out for trading. Great to hear that you made it though. Kudos.

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Help in choosing hedgefunds in which to invest

LuckyGirl

LuckyGirl