Hedge Fund Advertising

Have you seen all those large full page advertisements for hedge finances in the Wall Street Journal, the Financial Times, Investors Business Daily? You
haven’t. Maybe they are being drowned out by the regular common finances who continually state you how great they are.

Shucks! I forgot. Hedge finances are not
allowed to advertise. I inquire why. Maybe they think
that their possible clients are too dense to
cognize that hedge finances are a poor investment. Could be. The Securities and Exchange Commission
is trying to protect investors – Iodine think?

To be able to purchase into a hedge monetary fund the
smallest investor must have got a nett worth of
$1,000,000 and an income of more than than $200,000
per year. Maybe the second doesn’t believe these
folks are bright adequate to cognize a good thing
when they see it.

There are other groupings that are major
investors with the hedge funds. Literally billions
of dollars are invested by university endowments,
charitable trusts, state and corporate pension
plans. Could it be that they have got a better
tax return than regular common funds? Naw! The media
would state you wouldn’t they?

The mass mass media is there to report the facts. It
is hard to believe that just because a large
part of their income is from advertising
grosses of common finances that they would be lax
about this.

If you were a monetary monetary fund manager and your fund
was under performing and it was reported in the
local paper, TV, or radiocommunication would you pay them to
carry your advertising? You sure would not want
to be compared with public presentation of a hedge fund.

What is it that brands the difference of a
criterion common monetary monetary monetary fund with a hedge fund? Why does
the smart money gravitate to them? One word. Performance. A regular hedge monetary monetary fund manager is
paid on HOW much money he have in his fund and
not on how much he do for the investor. The
hedge monetary fund manager is paid a percentage of the
net income he do for the investors. No profit
intends no fillip so he better make the occupation or he
will be out of a job. Smart money moves. It
travels to where the net income is being made.

The second will not allow standard common fund
managers to be compensated in this manner. Their
claim is that it will be too dangerous for the
small investor. Hog wash! If a monetary monetary fund is losing
money the small cat should be merchandising his
current finances like the smart money and determination a
better acting fund. None of the media
urge this to the small guy.

My conjecture is there are enough intelligent
monetary fund managers who would wish to be paid for
public presentation and would put up no-load funds to
attract investors. The second looks to believe more
of the finances than they make of the smaller
investors.

It is a shame you can’t check the advertising
claims of standard common finances against the
tax returns of hedge funds.

Copyright 2005