Thursday, November 02, 2006
What Is a Hedge Fund?
In today’s ever-changing marketplace, it’s hard for the average investor to keep up with the “lingo.” Some investors don’t even know what the word “lingo” means! Is it a game show? Is it Australian? Who knows?
We here are VLKF Financial Services are here to help you, the potential investor, make savvy, risky, and safe decisions not only for your long-term financial goals and but also for your immediate gratification.
When the Dow Jones Industrial Index (NASDAQ) is down, people tend to bandy about the term “Hedge Fund” more and more. This is also true when the stock market is up. This might lead you to wonder, what exactly is a Hedge Fund, and how do I get in on this exciting once-in-a-lifetime opportunity? Here are some important things to remember.
1. Hedge Funds Are Not Mutual Funds. Although, technically, Hedge Funds are classified as Mutual Funds, there are at least six important differences. Keep this in mind.
2. Hedge Funds “hedge.” This is, of course, the main, pro-active impetus of the Hedge Fund archetype. This requires a contract stating protection against borrower fallout risk in the revenue-producing floor or ceiling, called a Qualified Financial Exchange. Practically speaking, this an offering. Stock is offered if financed analysis of principal-agent profits are at a minimum not necessarily between the two courses of action, either to buy or sell, never both. Execution of one between two things, such as the biter Stock issued the fallen angel. Abusive books are broken down into age of a customer, er, seller/buyer and Broker/analyst. In general, it means to increase brokerage bulk of trading business risks of a project. But that should be obvious, even to the layman. See: Ankle capitals (“The Caps”).
3. Don’t Put All Your Eggs In One Omelet. Many investors want to jump on the bandwagon and find the latest “hot” stock. Often, these tips come from unsolicited emails. Beware, novice investor! Although these tips are usually exciting opportunities to make easy money, you shouldn’t invest all your money in a single internet stock. Spread your money out amongst several. And remember—forwarding these offers to everyone in your email address book can only increase the chances of a big payoff. Share the wealth!
4. Don’t Go “Over the Hedge.” In the context of bonds, refers to the computed cost of shares in which the cost of the counterparty, the active covenant minus debits at the currency, political, and current level of the current market and current market price, is not paid. Like the old song says, “Shave and a Hotdog, Two Bits!”
5. Keep it Legal, Keep it Real. Now it’s time for the fine print. Don’t bother to read this section until the lawyers are beating your door down.
Exhibit A: Account Brokerage System (ABS) The system that records bids and times generates the Annualizing Test Ratio, also called a private life-of-loan interest rate. See: APS.
Exhibit B: A firm with negative trading transactions such as a leveraged U.S. government-sponsored articles of incorporation uses important, variable-rate, alternative market capitalization of less than $500 million. Phenylketoneurics: Contains phenylalanine.
Exhibit 3: Ahead on a limit order is the monthly basis we established on debt instruments, the Ginnie on its one-day bank collection float. Adverse options are fixed-income or cash basis accounting. Qualified or Performance Certificates issued from dividends on a monthly basis. (A portfolio should gain limited context in safekeeping.) Hey, you know, what the heck? You know what I’m saying? Any-or-all bid dealer in question, e.g. Volatility Phenomenon Agency theory. The effect of compounding is the effect of a transaction. Often used on a fundamental basis.
Exhibit D: The return (usually run over) returns and returns, calculated risk, an agent acts as intermediary. The seller would sell. This analysis is often seldom-used since the present value over the statement from an independent financial institution that measures the firm may levy a fee closest to the gain (.05^ - = general market.) Both indications lower the interest among major classes of futures contracts as well as calculating market (bid/ask) hours. For example, if the World must be mutual, the opposing centers are required to permit restrictions of Rule. Compare: six independent alphabetical categories provided some integrated volume from widely quoted balances. Sell the world.
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2 comments:
Hey VLKF, I often find myself wanting to use the phrase "hedge your bets" because I believe it will make me sound less ignorant to the global marketplace but I'm not sure what the proper context is and where to slip it into conversation...please help.
Your doting friend, Pops
Dear pops,
Thanks for your comment! The phrase "Hedge your bets" is a popular spoonerism coined by none other than Yogi Berra, former baseball manager and Eastern mystic philosopher. The correct term is, "Bet the hedges," referring of course to mortgaging one's property in order to invest in risky propositions such as Hedge Funds, hence the name. Hope that clears things up, and thanks again for your comment.
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