Hedge funds are financial partnerships that use pooled funds and employ different strategies to earn the highest possible returns for their investors. They are run by a fund manager, also known as the general partner, whose job is to maximize returns and eliminate risk as much as possible. Hedge funds are considered to be more […]
Tag: Hedge Funds
Intro to Activist Investing
When it comes to investing, many investors with large amounts of capital use the principle of activist investing (not to be confused with active investing). Activist investing involves buying a large stake of a company (see the examples below as stakes depend on the company). These stakes give the investor influence over the company’s decisions […]
The Difference Between Investing and Trading
Investing and trading are two different types of strategies those with money and access to financial markets employ. Generally, investing seeks to create slow and steady returns through investing in the future of companies. The trader, on the other hand, seeks to make risky short-term plays in markets, often entering and exiting a stock position […]
The Rise of High-Frequency Trading
On May 6, 2010, the Dow Jones cascaded into a nine percent plunge. Down nearly 1000 points, the markets were in an absolute frenzy. Blue chips with solid fundamentals and no surprises in the news were shocked with losses as high as 40%, in just 30 minutes. Then, equities climbed right back up as fast […]
Value Investing And Warren Buffett
With a net worth of over $80 billion, Warren Buffett has already cemented himself as the greatest investor of all-time. Buffett’s conglomerate Berkshire Hathaway has grown its assets to the hundreds of billions. Currently, it has major stakes in dozens of large market capitalization companies. Although Buffett’s success may inspire the average retail investor, it […]