A few facts about hedge funds every young investor should know
Post date: Mar 26, 2021 7:59:14 PM
Scott Tominaga of PartnersAdmin LLC explains that to understand hedge funds means to do in-depth research and really study the subject matter. It’s one of the biggest reasons he has come up with a series of blogs to help potential investors look past all the myths and misconceptions surrounding hedge funds, such as the investment vehicle being too-risky and too unregulated in a market that is recognized as too-volatile. To clear the air, Scott Tominaga discusses some important facts on hedge funds.
Hedge funds is for investors of almost any financial level. A lot of people believe that hedge funds are only for the rich. However, Scott Tominaga explains that there are actually many ways to enter hedge fund investments, and one does not even have to spend exorbitant amounts of funding to do so. There are hedge funds that are traded on exchanges, and there are others that can be accessed through pooling of investor money. In recent years, even fintech startups have entered the hedge fund game. Hedge funds are not as risky as people think.
While every investment carries its own set of risks, according to Scott Tominaga, not every risk is the same. For example, if risk is defined as the standard deviation of performance, then stocks and private equity are riskier than hedge funds, especially in the past 20 years.
Also, given the fact that there over 10 types of hedge funds, their risk levels vary. These depend on factors such as their correlation to the overall market movement, and more.
Learn more about hedge funds by following Scott Tominaga’s Twitter page.