What is a Hedge Fund?
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- เผยแพร่เมื่อ 28 พ.ค. 2024
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In this video I talk about what exactly a hedge fund is, how it invests, the structure, the fees, and more. There often tends to be a lot of confusion around hedge funds and so this short video hopefully demystifies many of the myths. Enjoy!
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TIMESTAMPS:
00:00 - Intro
00:23 What is a hedge fund
01:13 Which asset class do hedge funds fall into
01:32 A few common hedge funds
01:57 Why hedge funds are known to be risky
02:20 Hedge funds vs mutual funds
02:43 Hedge funds can invest long and short
03:19 Different types of hedge funds
03:45 Use of leverage
05:05 Risk appetite
05:29 Regulation
06:18 Fees (how hedge funds make money)
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Financial markets and the roles within easily explained: amzn.to/2WsRNKH
When Genius Failed: amzn.to/2Wt0nJI
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The Wolf of Wall Street: amzn.to/2K1RXSC
Money and Power: How Goldman Sachs Came to Rule the World: amzn.to/2WyKykN
Video suggestions are most welcome - feel free to leave them in the comments below!
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What is a hedge fund?
#HedgeFunds #Students #Careers - แนวปฏิบัติและการใช้ชีวิต
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SHORT SELLING OF GOLD AND SILVER WILL SEE IN THIS WEEK.GOLD WILL FALL TO 1800$, SILVER WILL FALL TO 18$. ETHEREUM WILL RISE LIKE BITCOINS.?
Woww, thanks so much for explaining this clearly. January 2021 I'm here due to the GameStop stuff going on right now in the US markets. Thanks & God Bless:)
Pleasure! Keep an eye out for a GameStop video soon 😉
Same here, I haven't a clue on this stuff. But I'm about to find out.
Smart, intelligent and articulate person.
Right this was perfect for me to understand
@@BagelzAlt haha
Careers in hedge funds next please.
Globe Op
Bruv! I have watched a ton of videos trying to get my head around this.. but you are the ONLY ONE that makes sense so far. 👍🏽 really appreciate it 😎
Haha thanks! 🙌🏽👊🏽
This guy is incredible.. it's the humble explanation!!! This is helping me with a programme I am doing. Thank you
Explained in an excellent way as always. Thanks Afzal
This is really amazing! Could you also explain niche areas like ecm and dcm?
@4:45 ... Its January 2021. Ma brother this just happened.
Keep it up afzal, i like the way u explained!
Pretty well explained man, congrats!
Great explanation. Would love a video on how to break into hedge funds and the career paths those in hedge funds take.
Really like the way you simplify difficult topics in so easy way.
Keep uploading more.
Loved it .
Thanks! 😊
Masha'Allah bro! Keep it up and please don't stop making such simplified videos. They are so much easier to understand as compared to other vloggers and websites.
Really appreciate your explanation.
thank you so much!! I really appreciated this video and your ‘Investment Banking Divisions Explained’ it helped me a lot!! keep up the good work
Thank you very much for the Post. I appreciate the fact that you was easy to listen to and to follow. Many blessings neighbor.
Can you please make a video on Consultancy vs Investment banking or Banking industry for the confused graduates like me. It'll be very helpful, Thank you!!! Love your work!
Superb explanation!! Thanks AH
Thank you for your great content. Could you please make a video explaining the most common vocabulary or terminology used in investment banks? For example '' investing short' or 'the book'. thanks
Looks so easy to learn mate. Idk if U making it to look like so, or it's something that need to be checked. However, the interest is way higher NOW. Congrats!!!
So well explained! Thank you 🙏🏾
I came here after running out of Google searches. Thank you so much for simplifying it! Wishing you all the best, from your new subscriber 👍
Thanks!
Great content! Been following you only the past few months but I’ve learned a lot from your videos! Thanks Afzal
This made everything so clear!!!!
Hi Afzal, thank you for the video, much appreciated. Please advise when the fee is paid on the hedge fund, the beginning or at the end of the year?
The only thing that confuses me is the negative bets and how they get money from that. (is it basically predicting a company to fail?) I'm really new to all of this so I am probably way off, but everything else made perfect sense.
if they expect a company's shares to decline in value they will sell now or SHORT (using borrowed shares) and buy it back later at a lower price ie sell at 9 buy at 6 later earn 3. hope this helps :-)
Hey Afzal,
I'm currently planning to send an application over to Goldman's IBD/AM between 2 regions. I can apply for 3 roles (IBD, AM EMEA and IBD APAC) but only one cover letter is allowed. How would you go about structuring the cover letter?
Thank u so much.. hedge funds were never this easy to understand
Newbie here. I feel like this video helped me understand the concept more. How does the firm on Shark Tank compare to a hedge fund?? Thanks for putting out great content!
This video made me want to invest in hedge funds at the same time it was explaining me that I never will be able to.
Thank you for the perfect explanation 🙏
Thanks for watching! 👍🏽
You just helped me understand what’s happening with Robinhood and Citadel right now.
Nicely explained
VIDEO SUGGESTIONS🚨📢
1) Careers in Hedge funds and generally in the BUY side of the market.
2) Stock Broking Companies
3)Credit Rating Agencies
Video on asset classes! Especially fixed income
I am always waiting for your videos
Mr Afzal to what extent is financial modelling skills useful in the field of investment banking
Please make a video on FRM, and CFA Vs FRM
Fantastic explanation!
Thank you for the video. Very informative.
0:50 pooled investment vehicle.
1:25 asset class is where you can invest in: fixed income, multiple asset, quant, alternatives. can invest long or short.
not very regulated. so they could negatively invest in something.
hedge is protect themselves.
4:00 they do leverage: invest through borrow money. because they have higher money.
accredited investor who knows what they're doing. large institutions can do.
administrative fee 2% and performance fee 20%
7:55 fee structures.
Truly good explanation.
Thx-Fathima
Hey there! I didn't know anything about hedge funds but after watching this my concept is clearer than before. I do have a question though. What do you mean by financial conglomerate affiliated hedge funds or FCAHFs for short? Are they hedge funds associated with/put out by companies like Citadel?
thank you! very useful
I learned so much!
Great information to have in mind
Great Information!
Hii sir, could you please do a video about frm as i am in the first year Bcom and want to do my cfa afterwards so would it be a good decision to start for frm from now ??
We tip our hats sir....
Facts. Thanks for the great vid sir.
Where do I start.learning about this and financing
Can you share on Market microstructure effects on transaction prices?
Fantastic video. Thankyou.
Thank you 😊
Great video as always very informative. Can you please do a video on your personal investment strategies? Thank you in advance🙏🏾
Any online courses or certification for hedge funds or alternative investment other than CAIA.? Thanks in advance
Nice explanation well
Nice presentation.
Hi Afzal,
Pretty much unrelated to the video but wanted to know your opinion between the CFA IMC and CISI IAD in terms of a greater prospect.
IAD had a focus on securities but the CFA has a bigger reputation? Not sure which one to choose
I'll be starting as a 1st-year student at Lancaster. I've already finished Level 3 in International wealth & investment certificate for CISI.
Career progression- Fund/Portfolio Management
Degree- Economics
THANKS DUDE!
best explanation on YT
Cheers!
do hedge funds play with liverage of 1:50 or 1:100 with forex like retail trader
Thanks
I think you could do some videos on consultancy
Superb Sir 👍
Thank you Hussein. What happens to the Investor's capital when Hedgefunds lose money? Do the hedgefund take any responsibility in the loss?
Assalomu aleykum
Again I am glad to watch you. Thank you for informative content.
Thank you
Excellent
Best brother
Attention All. This is an amazing video. Best online investment company for everyone.
Are jobs on wall street really decreasing? next video on this please!!
Do only the Portfolio managers make that 2% what about the analyst and associates?
20% fee on principal amount or profits above fixed %age return(5% in this scenario)?
profits.. if it was principal the fees would be higher than the profits themselves. so performance fee is a percentage of profits above a certain threshold(5% in this case)
Any good long term investments to invest in?
Do Hedge funds Trade Currencies and do they have a Propriatary Trading desk?
Yes ...
Just subscribed bro and liked. Love your breakdown I'm also from The UK, London. My plan is to launch a fund next year and was wondering if you had knowledge on how to get investment capital either from retail or institutions. Regardless we have to meet up face to face !
I'm doing exactly the same thing. Absorbing a ton of info and knowledge. If you wanna team up let me know as hedge funds aren't just built with 1 person. Also I'm in London
Hi Afzal
If a Hedge Fund makes a return of 5-6% per year. Is this considered good?
Are those all your books ?
Thanks! Can you make more complex videos as well though? I have been in the financial world for years but almost all the videos are superficial. For example perhaps there can be made a video about how to set up a hedge fund in a legal way, how do hedge funds go about picking financial instruments etc
Is it possible to owed a savvy hedge fund where up to $10000 can be invested by the investors
I'd be interested to hear about your personal investments strategy. Would you recommend someone young with little knowledge of the financial markets to put money into index funds?
Jamie Acton the short answer to that would be no
Great explanation man!
Earned yourself a sub!
Thanks man 👊🏽
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Get FREE access to my 'Creating the Perfect Investment Banking CV/Résumé' in-depth course here: skl.sh/3eMerCG
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Brilliant
Thanks!
I think Business cards would be an interesting video
What about them?
@@AfzalHussein Like at what point of your career you should make them, what general policies there are when making them etc.
You know why I here
#GME
love this guys channel hes fuckin awesome
What does it mean to go "long or short"?
I‘m not sure but i believe to go short would mean to be more active with your investments and focusing on fast success. Selling and Rebuying in a short timespan. To go long on the other hand implies a more sat-back way of handling your investments, you aim for long term success so your investment pays off after several years of waiting
Big up...
Would getting a graduate role be less subscribed than a position at a bank like Goldman
Supercars 27 you can get graduate role at Goldman aswell....
Hey Afzal, great video!
Can you do a video about prep courses?
For exampme if there is a higher chance of getting an internship if you got some certificates like these from FE Training, WallStreetPrep or Corporate finance institute.
Do you buy a book a day, sheeeet, I sub now yes.
are hedge funds haram? Please let me know and you mentioned the word betting a lot. Is it gambling money or is there genuine analysis done when executing the trades? Regards
This what my main concern is
Where are from you...??
Who can recommend a reliable and trustworthy trader that I can learn from ..I need to be mentored
I made a lot of profit trading with Carlos Beckham his techniques and strategies are too easy to learn I recommend him to all beginners
Wow I'm thrilled to see his other investors online
..I never knew he was this famous... Last week I made profit of $11300 from an initial deposit of $1000.. using his strategies ..it felt like magic
Wow I'm happy to see good reviews.... How can I contact him
That Maxwell intro 🤦🏼♂️
I'm intrested in you channel
7
Thou knowest what you ye are explaining.
This is not really accurate. A hedge fund is a specific type of legal structure and not strategy. You can have long/short hedge funds and UCITS funds that can (and do) follow the exact same mandate. The only difference being the risk and regulatory burden as dictated by the legal structure.
Okay, but how do hedge funds lose money because of what happened with Gamestop?
Video coming soon 😉
Because they shorted GameStop at $50 and it’s now at 330 cause of shitron and wall street bets.
@@ayesh8110 Thanks. I'm not clear on how you "short" something and make money. Do you have a video on that?
@@moxavenger no I retired from making videos but basically you can trade options (1 option is 100 shares) . If you think the stock will continue to go up you place a call and if you think it’ll go down you place a put (aka shorting a stock). If the stock goes up on a call you make money but if it goes down you lose money vice versa with a put. It may be a little confusing at first but if you watch TH-cam videos it gets easier to understand.
@@ayesh8110 Thanks, much appreciated!