Hedge Fund
Forbes Finance Council - The 5 Worst Ideas In Managing Money
October 2020
Forbes Finance Council - The 5 Worst Ideas in Managing Money
1 Short Selling
The Dow has risen from 1,000 in 1982 to over 27,000 as of this writing. On average, the stock market rises 6 of every 10 days. Investors can find better odds in Las Vegas than trying to short the market or shorting specific stocks even though this idea offers great intellectual appeal. Want proof? Equities hedge funds have generated a cumulative return of 58% versus 257% for the S&P 500 during 2010-2019, or 22% of the S&P return. Long only mutual funds according to the Lipper Survey have provided a cumulative return of 182%, more than 3x the hedge fund return. Worse yet, investors pay higher fees to have their money managed in a hedge fund.
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