The Science Of ...

Hedge funds 101 (seemingly complex; but they can make you wealthy)

Many investors consider hedge funds to be risky when, in fact, a proper hedge fund is less risky.

George Herman, Citadel

We’re have among the finest hedge fund regulations in the world.

George Herman, Citadel

Know your objective! Why are you doing this? Hedge funds have very specific purposes.

George Herman, Citadel

A hedge fund pools capital from individuals or institutions in a variety of assets.

The managers of hedge funds often use complex techniques to construct portfolios and moderate risk.

The United States and Europe passed regulations to increase government oversight of hedge funds after the financial crisis of the late noughties exposed a number of regulatory gaps.

The Money Show’s Bruce Whitfield interviewed Citadel Chief Investment Officer George Herman for his weekly “The Science Of” feature.

Listen to the interview in the audio below (and/or scroll down for more quotes from it).

Hedge funds are the ultimate return extraction vehicles.

George Herman, Citadel

You get the return but with a lot less risk.

George Herman, Citadel

The language can be intimidating but it’s not as complex as it seems.

George Herman, Citadel

Hedge funds are expensive compared to other funds.

George Herman, Citadel

We think performance fees align interests.

George Herman, Citadel

The downside is not shared by the fee structure.

George Herman, Citadel

There’s no prescribed qualification to become a hedge fund manager.

George Herman, Citadel

The best kind of hedge fund [right now] is an equity market neutral one.

George Herman, Citadel

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Article brought to us by Old Mutual.


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