Hedge funds are investment vehicles that are not publicly registered. They allow for more flexibility in structuring the investment portfolio, including the ability to go long or short. This gives hedge funds greater leeway in how they can balance and manage risks compared to traditional investment vehicles like mutual funds..
I got you if you’re feeling slow today 1. It’s not a registered investment vehicle, NOT registered with SEC (this means more risk involved which can equal more reward) 2. Lots of leeway, there’s a lock up period with hedge funds you can’t withdraw within certain time so Hedge funds have high liquidity risk. you’re Financially illiterate if think he said a lot of nothing
A hedge fund is a type of investment fund that pools capital from accredited investors or institutional investors and employs a variety of strategies to earn active returns for its investors. Hedge funds may use leverage, derivatives, short selling, and other sophisticated techniques to achieve high returns or to hedge against market risks. They are typically less regulated than other investment funds, such as mutual funds, which allows them greater flexibility in their investment strategies. However, this also means they are generally only accessible to qualified investors who meet certain income or net worth criteria.
It's actually something what the hedgehog had collected in the forest, including all your savings and one morning you wake up and learn that all your savings have vanished!
Hedge funds employee much more risks taking with many of them using different kinds of strategies to try and outperform a certain benchmark like the S&P500 for example. In other words, they all trade with secretive strategies.
He didn’t even fully answer it. Didn’t mention the type of money that hedge funds manage. E.g. institutions or UHNW Indivs etc. also how they’re compensated .
@@mattd2026 Because a lot of people don’t know what a hedge fund is/does. Also knowledge of hedge funds is important if you want to do well in the market.
hi Ray, as i always find extremely instructive any pice of information you deliver I have a question: information is good, but without financial instruments is pretty useless. Would you open a sort of “all weather portfolio” also for small investors? in the range of 10-100k dollars?
This a type of insurance which can be used by investors aganist various exposure, like transaction exposure, translation exposure and economic exposure etc. Hedging can be done by using forwards, futures and swaps, currency options.
@@DarkoFitCoachthey are a hedge against aforementioned risk to an already diversified portfolio. Hedge funds are a hedge, people that invest in hedge funds aren’t doing so to “outperform the market”.
Difference between hedge fund and mutual fund is... Hedge fund does both long and short, while mutual fund only long. Hedge fund has a limites stock in their portfolio, while mutual fund has diversified portfolio. Hedge fund will hedge you against the economic factors and give you returns, while mutual funds are exposed to economic factors, if overall economy falls the mutual fund will also fall.
When you go to the horse races, you always box your bets. If you are betting on 1 to win and 2 to place, you always HEDGE your bet with a bet for 2 to win and 1 to place. When you are in the stock market, you are gambling on the future direction of the stocks you buy. In order to HEDGE your bets, you need to have a place to offset your risk by betting against your stock purchases. So if you are managing investments for other people with their money, but if unforeseen circumstances arise and your bets do not pay off, you need to have an offsetting bet to pay out on your losses.
Hedge fund is a gambler whom you can put money with and he has some kind of mandate and strategy which he thinks he can make money and when he does make money he takes a cut of the profits. He also takes a fee which is charged a percentage and payable monthly.
@@DarkoFitCoach there are some really good ones which some of these really good ones limit their size, hence the number of investors who can invest in them. There are too many mediocre ones. Hedge funds are big in size, so if a retail investor who has the same skills can beat a hedge fund due to much smaller transaction costs and better liquidity. But for the really good ones, they are just really good despite their big size. It’s like driving a 18 wheeler safely vs crashing a motor bike.
@@benjaminpoon yes some can beat the market. 90% cant over a longer period. Every year is a grrat year for the managers, less for the investor that is paying for the whole party
Mr.Dalio, How do you feel about the African continent? How come American investors are not very invested into this continent even though it supply 30% of global raw materials?
It is money that individual rich people can hide behind the hedge , in a good spot where nobody can see it ,and it hides from being taxed but it's not buried completely so you can go and get it if you need it....
Not really, where do you get this information on. Almost every single succesful hedge fund is run on systematic or event based strategies. They are controlled extremely skilled quants and hedge fund managers who has years of market experience, they just find entry and exit oppurtunities in markets which are spotted through meticulously designed quantatative mathematical models. How is that a ascam
Only institutional and qualified investors can buy in, so they don't have a lot of investment guard rails like regular funds have to protect regular citizens who aren't rich
Mutual funds are generally long only non margin - HF use short, long, derivatives, margin, concentration, etc... Not registered, wealthy sophisticated partner investors only
a fund run by piranhas without a set strategy, who are smart and quick to adapt to changing market conditions, and are out there to make money for themselves and their investors in whichever way they can.
yes, but not many interacts with all of them. Most deals with specific areas of capital markets, some specializes in eventful arbitrages and others quantitative trading, at the end of the day his answer was correct.
It's an unregulated mutual fund. To stop people betting their life savings on risky hedge fund investments, typically hedge funds restrict investments to a _minimum_ of $1million. Because they are unregulated, hedge funds can make risky investments that can be highly profitable, or can be wiped out, so investors are _supposed_ to be aware of the high risk, speculative nature of their investment in a hedge fund. I have done OK in life, though nowhere near well enough to invest in a hedge fund, but I wouldn't even _want_ to invest in a hedge fund!
This is how I answer a question when I don't know the answer 😭
Hahahha
😂😂😂😂😂😂
💀💀💀💀💀
“So what exactly is a hedge fund?“
“So we got this new Jeep coming out“
fr hahahaha explained absolutely nothing
😂😂 that's exactly how I interpreted it
😂
A Fund that is for Hedging.
That is the _one_ thing that a hedge fund most certainly _isn't!_
A fund that buys hedges 😂😂
Or a fund for the benefit of hedgehogs 🦔
A hedge that is for funding
Hedging is just taking long and short positions at the same time
Biden, is that u..? 🤣
I am a huge Ray Dalio fan, but this is a pretty low quality video for the masses.
What do you expect from a 30 seconds video?
You have the option to go back in time and rewarch ray
This is how my wife answers when I ask her where she wants to eat for lunch🤦♂️
💀💀💀💀💀
I heard 2 times and some keywords: balance risk, private.
One is for the rich. Other Is for ultra rich
You think mutual funds are just for rich people? Lol.
@@BrockOBauma thanks obama
@@xyzmediaandentertainment8313I’m assuming the latter is Hedge Fund?
Hedge funds are investment vehicles that are not publicly registered.
They allow for more flexibility in structuring the investment portfolio, including the ability to go long or short.
This gives hedge funds greater leeway in how they can balance and manage risks compared to traditional investment vehicles like mutual funds..
He said a lot. Those that study understand.
He sure said a whole lot of nothing lmao
He made good sense on what the difference is...
Have you suffered a recent blow to your head?
@@Alpha-kv3ou haha
I got you if you’re feeling slow today
1. It’s not a registered investment vehicle, NOT registered with SEC (this means more risk involved which can equal more reward)
2. Lots of leeway, there’s a lock up period with hedge funds you can’t withdraw within certain time so Hedge funds have high liquidity risk.
you’re Financially illiterate if think he said a lot of nothing
@@juanitoqueintin5908expound a bit for me
A normal fund is for plebs. A hedge fund is for hercules.
Thank you very much Mister Dalio, I love you a lot, thank you
Same as hedging your bet on the craps table when you are playing the odds.
What he met was it’s people that gather money to bet against the market..
Money laundering with insider trading
A hedge fund is a type of investment fund that pools capital from accredited investors or institutional investors and employs a variety of strategies to earn active returns for its investors. Hedge funds may use leverage, derivatives, short selling, and other sophisticated techniques to achieve high returns or to hedge against market risks. They are typically less regulated than other investment funds, such as mutual funds, which allows them greater flexibility in their investment strategies. However, this also means they are generally only accessible to qualified investors who meet certain income or net worth criteria.
It's actually something what the hedgehog had collected in the forest, including all your savings and one morning you wake up and learn that all your savings have vanished!
Hedge funds employee much more risks taking with many of them using different kinds of strategies to try and outperform a certain benchmark like the S&P500 for example. In other words, they all trade with secretive strategies.
Why is he being asked such a basic investopedia level question?
He didn’t even fully answer it. Didn’t mention the type of money that hedge funds manage. E.g. institutions or UHNW Indivs etc. also how they’re compensated .
@@Dedicated_.1 why waste his breath when he's trying to warn a generation about the fall of an empire.
And answering it wrong, too. Its because this youtube channel just shills suboptimal advise.
@@mattd2026
Because a lot of people don’t know what a hedge fund is/does. Also knowledge of hedge funds is important if you want to do well in the market.
@@Dedicated_.1 😅😅😅
It’s a criminal organization
hi Ray,
as i always find extremely instructive any pice of information you deliver I have a question: information is good, but without financial instruments is pretty useless. Would you open a sort of “all weather portfolio” also for small investors? in the range of 10-100k dollars?
Not a clear response. I guess taken out of context Ray did not have the concise definition ready..?
How was it not clear? In a mutual fund you have restrictions and in a hedge fund you can do whatever you want.
A hedge fund is an unregulated mutual fund. It's that simple.
This a type of insurance which can be used by investors aganist various exposure, like transaction exposure, translation exposure and economic exposure etc. Hedging can be done by using forwards, futures and swaps, currency options.
Sounds awesome so how come hedge funds by and large underperform the market?
@@DarkoFitCoachthey are a hedge against aforementioned risk to an already diversified portfolio. Hedge funds are a hedge, people that invest in hedge funds aren’t doing so to “outperform the market”.
A investment company for rich people
"...allows...to go Long or Short..operate that way."
I often think about starting a Hedge Fund as my performance and discipline keep getting better.
In other words, a hedge fund is a members only club😂😂
Ray Dalio was born poor bruh
Wow that was clearly explained 😐😑🤨
"Bullshiting" in other words he said😂
don't pay attention to the man behind the curtain, I'm the wizard!!!
Difference between hedge fund and mutual fund is...
Hedge fund does both long and short, while mutual fund only long.
Hedge fund has a limites stock in their portfolio, while mutual fund has diversified portfolio.
Hedge fund will hedge you against the economic factors and give you returns, while mutual funds are exposed to economic factors, if overall economy falls the mutual fund will also fall.
Sounds awesome so how come hedge funds by and large underperform the market?
When you go to the horse races, you always box your bets. If you are betting on 1 to win and 2 to place, you always HEDGE your bet with a bet for 2 to win and 1 to place.
When you are in the stock market, you are gambling on the future direction of the stocks you buy. In order to HEDGE your bets, you need to have a place to offset your risk by betting against your stock purchases. So if you are managing investments for other people with their money, but if unforeseen circumstances arise and your bets do not pay off, you need to have an offsetting bet to pay out on your losses.
Biggest thing hedge fund is and does is: it underperforms the sp500 and it makes the managers rich via commision
Hedge fund is a gambler whom you can put money with and he has some kind of mandate and strategy which he thinks he can make money and when he does make money he takes a cut of the profits. He also takes a fee which is charged a percentage and payable monthly.
Sounds awesome so how come hedge funds by and large underperform the market?
@@DarkoFitCoach there are some really good ones which some of these really good ones limit their size, hence the number of investors who can invest in them. There are too many mediocre ones. Hedge funds are big in size, so if a retail investor who has the same skills can beat a hedge fund due to much smaller transaction costs and better liquidity. But for the really good ones, they are just really good despite their big size. It’s like driving a 18 wheeler safely vs crashing a motor bike.
@@benjaminpoon yes some can beat the market. 90% cant over a longer period. Every year is a grrat year for the managers, less for the investor that is paying for the whole party
Mr.Dalio,
How do you feel about the African continent? How come American investors are not very invested into this continent even though it supply 30% of global raw materials?
Can you do a video about pleace? Greetings from latam
Question --- Diflected
It is money that individual rich people can hide behind the hedge , in a good spot where nobody can see it ,and it hides from being taxed but it's not buried completely so you can go and get it if you need it....
It allows for fraud while not actually committing fraud, per se
Not really, where do you get this information on. Almost every single succesful hedge fund is run on systematic or event based strategies. They are controlled extremely skilled quants and hedge fund managers who has years of market experience, they just find entry and exit oppurtunities in markets which are spotted through meticulously designed quantatative mathematical models. How is that a ascam
@@firstconsul001how come hedge funds so often and by and large underperform s&p500 whilst an index bought for cents beats it?
I like to think he asked the same question again after that very complex answer
I am the 100th comment and i know I'll sure make 100s of millions 9f dollar in life
There’s a difference between a definition and features of something
That's called waffling
It is only for rich people,
Most stock hedge funds short the stocks or entire market most of the time now!😮
Only institutional and qualified investors can buy in, so they don't have a lot of investment guard rails like regular funds have to protect regular citizens who aren't rich
Ray is talking to the Apes.
Casino would have been a better answer !
They forgot to tell you at a non-regulated form
Mutual funds are generally long only non margin - HF use short, long, derivatives, margin, concentration, etc... Not registered, wealthy sophisticated partner investors only
What tf was he even saying? Vehicle to portfolio? I swear, they use sophisticated words just to say nothing.
What a joke. Did he say anything? If people knew what it is legal for these hedge funds to do it would terrify them.
Loop holes
Hedge fund is a trading Company for high returns
So a hedge fund basicly controls the market whether it goes short or long?
It's the lee way that you should focus on. It's private and thus is not regulated by the government.
To steal in any number of ways
Its the special boy secret club scam edition of a mutual fund
No registered so less rules
Oh, ok, got it
To go short or short
Hello boss how are you
Hedge funds = protect money
Ok now what’s the hedge fund
a fund run by piranhas without a set strategy, who are smart and quick to adapt to changing market conditions, and are out there to make money for themselves and their investors in whichever way they can.
Not an explanation.
Sophistry
bro started speaking yappanese
In laymen’s terms please
You have to understand derivatives before understanding this conversation
hedgehog
Is hedge fund employee do trading forex,crypto,stocks,indices, commodities,etc ???
yes, but not many interacts with all of them. Most deals with specific areas of capital markets, some specializes in eventful arbitrages and others quantitative trading, at the end of the day his answer was correct.
I still have no clue what the f it is.
Do you even understand what a mutual fund is, he simply contrasted the mutual fund to a hedge fund
So we don’t know…
😂😂
Still don’t know
On January 1, 2025, my investment management company will be bigger than the Bridge Water Association.
Yeah right
And ... It's gone!
Still don't know wtf us a hedge fund
It's an unregulated mutual fund. To stop people betting their life savings on risky hedge fund investments, typically hedge funds restrict investments to a _minimum_ of $1million.
Because they are unregulated, hedge funds can make risky investments that can be highly profitable, or can be wiped out, so investors are _supposed_ to be aware of the high risk, speculative nature of their investment in a hedge fund. I have done OK in life, though nowhere near well enough to invest in a hedge fund, but I wouldn't even _want_ to invest in a hedge fund!
a hedge fund is a fund that is hedge lmfao
It is a fund for wealthy suckers
why is he asking the same question over and over again
Explain like I’m a 3 year old please
Steal your money
Huh?
Ye fraud platforum hy.
Ye aap ki investment amount wapas nahe ker k day
You said a lot and said nothing at the same time
it makes sense lol just say you dont know anything.
Full of himself
Steal money
Scam
Great, Even more confused after watching…
A investment company for rich people