Hedge funds have been around since the fifties but only grew in popularity in the 1960s. With big names like George Soros and Michael Steinhardt, fund management gained a high profile within the investment community and beyond. During this time, what didn't gain quite the exposure was what a hedge fund actually did.
Hedge funds are very similar to mutual funds except for fewer regulations and therefore can invest in a broad range of investments including shares, debt, commodities and so forth. Hedge funds have the freedom to seek to offset potential losses in the principal markets invested in by hedging their investments using a variety of methods, hence the name hedge funds. There are approximately 14 distinct investment strategies used by hedge funds, each offering different degrees of risk and return. A macro hedge fun, for example, invests in stock and bond markets and other investment opportunities, such as currencies, in hopes of profiting on significant shifts in such things as global interest rates and countries' economic policies.
Hedge funds are typically open only to a limited range of professional or wealthy investors. This provides them with an exemption in many jurisdictions from regulators governing shorting selling, derivative contracts, leverage, fee structures and the liquidity of interests in the fund.
A hedge fund will typically commit itself to a particular investment strategy, investment types and leverage levels via statements in its offering documentation, thereby giving investors some indication of the nature of the fund.
A persistent misconception in the general public is that all hedge funds act alike. Not true. On the one hand, you have "quants," short for quantitative investors that fine-tune software-driven investment strategies. On the other hand there are the hedge funds that invest through the market by getting under the skin of companies and reviewing their past and current performance and future earnings.
The other misconception is that all hedge funds are volatile. In reality, less than 5% of hedge funds are global macro funds. Most hedge funds use derivatives only for hedging or don't use derivatives at all, and many use no leverage.
Wednesday, May 27, 2009
Sunday, May 17, 2009
Starting with mortgages
If you are interested in optimizing your monthly payments on the debt, or simply looking to stretch your income a little more each month, you should consider refinancing your mortgage.
There are two basic ways to go about this. First, you should consider switching to a fixed rate home loan, on adjustable rate home loan. A fixed rate home loan is a loan that your interest rate is “locked” and not changes from year to year. Adjustable rate home loan is a loan that your interest rate dictated by the market.
A second option is known as a "payment" refinancing, in which all of the old loans are paid and the new. This is a reasonable option because the interest you paid on the original loan is made and you finally start to pay interest on interest. The new loan, you can use the new start you need.
When considering a lender to refinance your mortgage application will take into account a range of factors, including current balance, monthly payment, and the remaining few months of your current mortgage.
If you're looking to consolidate your debt load or simply to maximize disposable income, mortgage refinancing can be your solution. There are several potential disadvantages to consider, think you. Many lenders will imply additional costs for early or unscheduled payments, let alone ask your lender as many questions as you can.
In the case of mortgage refinancing, you might consider consulting a mortgage broker. A broker works for you, and not for a specific financial institution. It can be your application, and trade around the various creditors. That you can determine to some extent that the terms of your mortgage. This can often lead to significant cost savings, because you essentially pit the lender against the other for your business. It is certainly something worth watching if you really save some money. If you're not really saving money, you should be.
There are two basic ways to go about this. First, you should consider switching to a fixed rate home loan, on adjustable rate home loan. A fixed rate home loan is a loan that your interest rate is “locked” and not changes from year to year. Adjustable rate home loan is a loan that your interest rate dictated by the market.
A second option is known as a "payment" refinancing, in which all of the old loans are paid and the new. This is a reasonable option because the interest you paid on the original loan is made and you finally start to pay interest on interest. The new loan, you can use the new start you need.
When considering a lender to refinance your mortgage application will take into account a range of factors, including current balance, monthly payment, and the remaining few months of your current mortgage.
If you're looking to consolidate your debt load or simply to maximize disposable income, mortgage refinancing can be your solution. There are several potential disadvantages to consider, think you. Many lenders will imply additional costs for early or unscheduled payments, let alone ask your lender as many questions as you can.
In the case of mortgage refinancing, you might consider consulting a mortgage broker. A broker works for you, and not for a specific financial institution. It can be your application, and trade around the various creditors. That you can determine to some extent that the terms of your mortgage. This can often lead to significant cost savings, because you essentially pit the lender against the other for your business. It is certainly something worth watching if you really save some money. If you're not really saving money, you should be.
Thursday, May 7, 2009
Why should I create a blog?
With all the opportunities available online to make money, why would you want to create a blog? Is not it hard work?
But the misconception that blogging is often a complex one. The fact is a blog is the perfect platform for just about any type of online business. Efficiency and simplicity is surpassed by no other means has been found on the Internet today!
Let's look at 5 reasons why you want to use a blogging platform for your online business:
1) Very Economical - costs associated with maintaining a blog is marginal at best. Some blogs are free, and even the most popular blogs would cost less than € 100.00 per annum to establish and maintain!
2) Simplicity and Speed - in little or no time, you should blog and live on the Internet. There is no encryption, you learn. If you can negotiate MS Word allows you to blog! With all the available widgets little thing to have or need an encryption what so ever!
3) Your blog is excellent! - With a blog that you are capable of a person who most of you, or perhaps one that takes into account the subject of the blog itself. In any case, there is a satisfactory feeling in the science; there is another blog exactly the same as yours. This uniqueness will help build your blog traffic in time. This is especially important if you have a business blog.
4) It is easier to find on the Internet. Blogs are very popular among search engines because of content that are usually updated regularly. The more your current content of the higher search engines rank you in general. Of course it is also proportional to the quality of the content that you post and the blog, you have traffic coming to your site.
5) Maintaining a blog is actually enjoyable. Once you are familiar with your blog and you begin to "connect" with your readers, you may find your research and posting more like play and less like work. If you have business relations blogs the more traffic you will attract more sales you, and even fun!
If your intention is to earn money with your computer from the comfort of home you just want to make a blog. The ease and cost of setting up blog sites makes this type of marketing platform very attractive. The effectiveness of its marketing capabilities makes it a no-brain!
But the misconception that blogging is often a complex one. The fact is a blog is the perfect platform for just about any type of online business. Efficiency and simplicity is surpassed by no other means has been found on the Internet today!
Let's look at 5 reasons why you want to use a blogging platform for your online business:
1) Very Economical - costs associated with maintaining a blog is marginal at best. Some blogs are free, and even the most popular blogs would cost less than € 100.00 per annum to establish and maintain!
2) Simplicity and Speed - in little or no time, you should blog and live on the Internet. There is no encryption, you learn. If you can negotiate MS Word allows you to blog! With all the available widgets little thing to have or need an encryption what so ever!
3) Your blog is excellent! - With a blog that you are capable of a person who most of you, or perhaps one that takes into account the subject of the blog itself. In any case, there is a satisfactory feeling in the science; there is another blog exactly the same as yours. This uniqueness will help build your blog traffic in time. This is especially important if you have a business blog.
4) It is easier to find on the Internet. Blogs are very popular among search engines because of content that are usually updated regularly. The more your current content of the higher search engines rank you in general. Of course it is also proportional to the quality of the content that you post and the blog, you have traffic coming to your site.
5) Maintaining a blog is actually enjoyable. Once you are familiar with your blog and you begin to "connect" with your readers, you may find your research and posting more like play and less like work. If you have business relations blogs the more traffic you will attract more sales you, and even fun!
If your intention is to earn money with your computer from the comfort of home you just want to make a blog. The ease and cost of setting up blog sites makes this type of marketing platform very attractive. The effectiveness of its marketing capabilities makes it a no-brain!
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