What is a hedge fund? - MoneyWeek Investment Tutorials
ฝัง
- เผยแพร่เมื่อ 30 พ.ค. 2024
- Tim Bennett looks at the secretive world of hedge funds, explaining what they do and how they aim to make money.
Visit moneyweek.com/youtube for extra videos not found on TH-cam.
MoneyWeek videos are designed to help you become a better investor, and to give you a better understanding of the markets. They’re aimed at both beginners and more experienced investors.
In all our videos we explain things in an easy-to-understand way. Some videos are about important ideas and concepts. Others are about investment stories and themes in the news. The emphasis is on clarity and brevity. We don’t want to waste your time with a 20-minute video that could easily be so much shorter.
Related links…
- What is an exchange-traded fund?
moneyweek.com/videos/what-is-a...
- What is private equity?
moneyweek.com/videos/what-is-p...
- What is the LIBOR/OIS spread?
moneyweek.com/videos/what-is-t...
- Why a short-selling ban won't work
moneyweek.com/videos/video-tut...
- Equity crowdfunding: you can invest in start-ups
moneyweek.com/videos/equity-cr...
This guy is fantastic - who’s watching in 2020?!
I am. I love this guy.
2021
@@atharvamehendale4476 yes sir
I've just watched it for the first time, and it's now 2023. Presentation by Tim Bennett is superb. I wonder if he's still 'teaching'?
why is everybody moaning in the comments? The sound is fine, he talks clearly and explains it in simple terms. If you don't know what derivatives are then maybe you should watch some of the other videos first, he can't explain every single financial product as he goes along. Thanks for the video!
Stock and fx are the best investments anyone can do.
Less risky and highly profitable.
Very correct. I have made more money from stock trading than i made from my job.
Jerry alfred. I know it's weird to ask but how much do you make in a month from the stock market?
@@philchege7155 I don't earn a specific amount. I have a broker who handles all my trading activities. By the end of the month, I withdraw my profit while 25% commission goes to my broker and his trading team. Two months ago, i earned $19,300. Last month i earned $26,800. The profits depend on your broker's experience and expertise.
@@jerryalfred1121 can you give me more details about your broker and how i can connect with him for assistance?
Trading is very profitable but it requires alot of effort and professionalism.
This guy is awesome I could listen to him talk about anything.
"How to flip coke and get rich quick" 😂 *takes bumps throughout the video*
i dont mean to be so off topic but does any of you know a tool to log back into an Instagram account..?
I somehow lost my login password. I would appreciate any help you can offer me
@Atlantis ppppppp
Just bullshitter!! Nothing else!! Hedge funds are VERY RISKY LIABILITIES for every body, who invests in those funds!!
Hedge funds are so secretive that he has to whisper to talk about it?
Lmao
Haha I thought the same
lol...you killin me!!
+Mene Tekel lol
hahahahhaha...
Love this guys videos. I wish my lecturers at college were as clear in their explanations of the finance world.
This is how professionals talk and I like the way he talks. I am an Indian and i can understand the importance of what he is saying...
I've have been watching your videos over the past few weeks, and found them enjoyable and informative. Congratulations, you now have a new subscriber to MoneyWeek magazine!
wow AMAZING video. i went from knowing 0 about hedge funds to understanding what they are. your presentation style is great and i love how you weighed off the pro's and cons in the end of the video.
Subscribed! Man! you are too good - you bring the concepts out in simple & realistic way (& not text bookish way)! Keep Going!
Tim makes it very elementary. This is a teacher I can learn from in a classroom. All new to me!
Grand video really , Very helpful and explanation was spot on .
Good point about the lighting - will see if I can get that changed. Cheers Tim.
Please keep making videos. They are really well done and are informative.
Tim Bennett: I wanted to thank you for your delivery of this video. I thought that you presented it very well. I do note it's been some time since it was made, so a compliment for you that is well overdue. You made it interesting and I enjoyed watching it. I learnt something, thank you.
This is a brilliant video! Short yet very informative.
Tim I love your videos - the best explanations on TH-cam that I have seen. Thank you
thanks for this i learn a lot.
Thank you very much! Lucid as always. Great job.
Awesome Explanation Love the Accent
Thank you for making this video, I hope you continue to make more.
The best tutorials on YT.
Mr. Tim I like your work here. Thank you.
You are awesome sir. You made complex simple 😃
Best video about hedge funds.
Absolutely outstanding videos!!! Do you have any suggestions for someone interested in a systematic approach to self-studying finance/investing. I have a health sciences background with no prior study of business or finance.
great vid mate
awesome guy with awesome explanation of such a complex topic
another great, easy-to-comprehend video for all laymen who wanting to make their money growth.
Hey Tim, another great video! Does anyone know if There have been any moneyweek videos about the bank bailout?
This is a great video! #Knowledge dropped Tim!
Frankly Tim, you should get arrested. Your videos are very addictive. I am an Engineer interested in finance, economics, investing, etc; and the way you explain things is brilliant.
You make things as beautiful as a Dickens book. For me, that's the important part: The concepts. The "Why" of things. Your analogies are just amazing (P&L, B/S and Cash flow, the snap shots as opposed to the "story". It helps in ways you may not even suspect.)
Thank you Sir!
Nice work mate. thanks
excellent video and explanation
Good Explanation thank you Tim! Why 20% very good conclusion! and 5% - 10% of portfolio really should be for spicy taste!
Thank you!
A hedge fund is essentially an investment partnership. They don't have to be traders; some, like William Ackman or Seth Klarman are value investors.
What's it called when you invest in a hedge funds fund acc? They have smaller entry fee than making an 1mil payment into a hedge fund investment?
It is called a fund of fund. A fund that invests in other funds. It is a decent way to initiate a hedge fund strategy but the extra layer of fees kind of ruins the alpha of hedge funds
Another great video thanks.
Excellent video. Thanks
Excellent video. Great explanation of Hedge Fund. Ouch that 2 and 20% fee! Loved the sneaky early radio football match result sold as an "Arbitrage" strategy!
Great video. Thanks for sharing. God bless :)
Well explained! Thank you
FYI If you light from a angle there will not be huge blinding spots
Well done !
Excelent lecture thank u very much
you are awesome salute from canada
thank you for your info just one question, now come banks can get away with what they do?
Hi, I tried watching this video but there is no sound available could you fix that please?
Great videos
I love how you speak, the whispering gives me ASMR feeling down my spine, all while learning about hedge funds. Thank you Tim
really good
Thanks very informative
Regarding the "football arbitrage" strategy you initially spoke about, isn't this considered insider trading? Or can this strategy only be leveraged with "unregulated" hedge funds?
good video thanks might you be able to do a video on private equity ?
Thank you
Keep it up,Jose,,!!!
Hi there MoneyWeek, could you make a video where you explain what is a Holding company?
Thank you sir.
I like your voice fluctuation when you explained that "they tend to be quite secretive" Good video.
Excellent.
loving this guy lol !
yeah he is funny isnt he) like superclever nutty professor)
he loves u too!
great video
Did anyone notice pacman on the left hand side?
Toby Lerone OMG I thought I was the only only
Lol
Couldn't take my eyes off of it.
Hahahaha
Thanks. Now I can’t unsee it.
Brilliant video---like all your others.I think you are an amazing teacher.Do you perhaps know of any hedge funds that practices islamic finance?
Tim you are a God.
My man Tim "We've got a video for that too" Bennett
While others' video induces me to sleep halfway through, this guy isn't. He is the Jack Palance of investing.
should have subscribed to this channel long time ago
Hey, i would like to start saving my money in a Compound Account. Please can you give me some good examples of a Compound account.
Best explanation of betting I've seen. Money ie store of value is real but these structures are nothing more than betting and now with the size of these funds, manipulation of the money market. The whole idea of a money market is the root of the problem, these funds do nothing to add to "value" they leach the value!
Nice shirt!
im also interested in how index funds work:)
So.. macro strategy is basically betting or investing in commodities? Anyone help please
Let me ask a question. Let's say I want to open a real estate investment fund. We are going to do a $10M fund to invest in 2 different multifamily projects as institutional investors. The sponsors/operators of those projects already charge asset management fees for the project itself, so, how do we, as the investment company/institutional investor, charge our management fees to our investors as well? Do we negotiate with the sponsor for them to charge a lower fee, do we simply charge our fees and if the numbers make sense, they make sense and that's it? I guess my question would be; In many investments institutional investors make, they are not necessarily the managers of the investment itself, there's another company actually managing the day-to-day operations, and the investment fund/institutional investor simply deploys that capital to the deal and "manages" the investor' money, but not the asset... Is this something that happens and it's completely normal? And if so, how do you structure that and the fees and everything?
did not really understand the 130/30 strategy. could you explain that further ??
+Ratik Shetty I've recently read in a book that 130/30 just means that the hedge fund trades with a leverage of 1.3 (10% movement results in 13% for example) and that the hedge fund may use 30% of the total funds to open a short position.
Not sure if he mentioned it or not in the video, it should have been one of his first keypoints however... Minimum starting capital to join a hedge fund is around $100k in the US. That being said, 95% of hedge funds out there wont accept you unless you have $1M. So if thats you then good luck but im guessing its not the majority here on this video. The way they can justify their managers taking a huge cut is because hedgefunds are trading with 100's of millions if not billions of dollars. This is how your typical fund is able to provide a 30%ish ROI(Return on Investment). If you're part of a very good fund you could be making 60%+ annual ROI, however you will need roughly 50M to even get into these prestige funds. Essentially, its an incredible passive income, so long you do your propper due dilligence on the fund before hand, and have a good few million starting capital, you could be making $500k+ Sitting on your ass all year. LOL.. Kind of funny when you think about it... but It's life folks... The rich get richer the poor stay poor lol
what? bro nobody returns 60% a year on average, it's just not possible. They may get it one year if they are really lucky and in a very bull market, in fact 30% a year on average is still stupidly high and no fund has achieved it, fidelity magellan was the closest fund to 30% average return over 13 years (29.something) and it was actually a mutual fund, it's just that the manager was so good.
_Nice_
can u make it succinct???
This could be a very interesting presentation from a respectable source. However, there is no sound in the video.
great Video Tim, I would like to ask a question.
Was LTCM a hedge fund that got bailed out?
Yes they were
They weren't bailed out by taxpayers, they were bailed out by banks.
Every investor should subscribe this channel!!!!!!
Where’s this guy gone.. gotta get him back on the channel
If you plan on going in the investment banking industry you will need to know about hedge funds
this guy is the key to insomnia.
lol
9:14 i replayed 5 times at least, didnt get it how the 130/30 strategy works
Hi - try khanacademy for a different choice of accents! Cheers Tim.
Can somebody please explain more on the 130/30 strategy? How can a fund manager invest a total of 160 when they only short 30?
Also, afaik, you need to keep a 150% margin in the account to initiate a short. Meaning in this example the fund manager needs to deposit 45 to initiate a short of 30?
When you short, you are essentially selling an asset you don't have yet for cash. So, if you sell the asset for 30, you get 30 cash and then you can use that cash on the long position. I'm not certain but I believe that large funds can use other collateral to put down for the short bet which allows them to use this method. It's not really possible for the normal retail investor which is exactly what makes it a special fund strategy.
The ultimate arbitrage (I call it reverse arbitrage) is using the face value of American Eagle $50 (or $1) coin. By paying $1500 in federal reserve notes for a $50 coin renders the buyer with a $1450 federal reserve note loss; a currency trade loss that can be used to offset capital gains. I say this as hoarding is a horrible idea and by creating a demand for this will thrust this coin in to a value by utility. This also works for gifting.The key is to never reference its medium, rather reference its face value only as it is de facto law prescribed by the US Treasury. A paper federal reserve note has a value by fiat regardless of its medium, paper in this case. A minted coin by the US Mint has a face value by fiat regardless of its medium.
sounds like sherlock holmes in elementar...quite informative i must say...loll
the last trait of US hedge funds is that you need to be an accredited investor to have a stake in a hedge fund.
One Hedge Fund i know promises an annual return of 24%. This year for my own investment portfolio I made a return of 16%. Would have loved to make 24% so there's some incentive to give your money to a Hedge Fund but also many downsides.
The good old times :D
I am actually interested in studying & majoring in Investment Banking but i'm kinda on the fence about it because I think I don't have a big enough idea about it.
can anybody tell me what's it like? hows the work & what degree will put me in the best position to landing an investment banking job?
Any help is appreciated , thanks.
degree doesn't mean anything when it comes to investment. you can even start now by browsing through investment and finance videos and learn them from scratch. The best way to learn is start yourself investing in stocks or other commodities such as gold and silver. For degree i suggest you to enroll either finance and investment or actuarial science. just my opinion though hope it helps
JeevS GOne I was actually looking into Economic and Statistics , will that be sufficient or will something like actuarial science give me a clearer pathway into something investments?
I actually have some time off before college and i was finding something to do that would be relevant to my career , any advice?
Warren Currier
a rather harsh evaluation of dinuka but you're correct. nobody gets far by asking questions they can easily have the answers to. but, thank you as i'm a finance major right now trying to assess possible opportunities i can take to land me in a hedge fund or investment bank. i've watched a number of videos on youtube and it seems i'm learning more and more every day. i know i'm not anywhere near competent but the article was actually more helpful than the few books i've looked at.
Dinuka Malith Have a go at studying actuarial science. We covered a lot of the hedge fund theory in our course
To become an IB, you most likely need to graduate from an Ivey leagues school.
Didn't notice Packman
Shhhhhhhhh..... not so loud!!! You're giving our secretive secrets away
I checked this picture because I got really concerned with the economy and had not a clue what to do. Cash certainly does not mean anything at all any longer. Thus I chose to do a little groundwork and stumbled on Goldiverse. I am just so grateful, I have the ability to change my savings from cash to different currencies, to any precious metal as soon as I like. The governing administration can go and take a jump for all I care. Just Google it Goldiverse.
Sounds like "Hedge Fund" is a big misnomer. It's not about a "hedge", although anything may have a hedge.
Hi, have you wondered this program called the Intellitus Cash System? (look it up on google). My brother says it earns people tons of money.
Want a sound? Go to youtube dot com /html5 (links in comments are not allowed) and start using HTML5 instead of Flash player, then you will have the sound.
hedge funds are often for private investors who should know better than investing in them
What one could expect where the money would be when the comp we invested goes bankrupt because of some news events being made somewhere ,
Can someone explain to me who finances Investment banks? (Source of funding) I need to answer that in class
We (Bank Customers) do. For example, say you put $1000 in the bank, the bank will put 10% ($100) in the Federal Reserve, and the remaining 90% ($900) will be loaned out to the public as a loan; thereby, stimulating the economy. Now, the $900 that is loaned out, 10% ($90) will go to the Federal Reserve and the remaining 90% ($810) will be loaned out to the public - again, stimulating the economy. Then, the $810 that was loaned out, 10% ($81) will go to the Federal Reserve and the remaining 90% will be loaned out to the public.. stimulating the economy. This will be a recurring process. Basically, $1000 that was put in saving will create over $4500 for the economy. There's more to it, but this is how banks are financed. Hope this help.