Hedge funds rely more on the decision-making of fund managers than on market orientation. To some extent, hedge funds are like a bad boy. He will not rely too much on the change of market direction, but will do the opposite, relying more on investment managers to win profits through various unexpected decisions, which may pose a greater threat to the market-oriented national economy and cause a large number of investors to gradually transform market-oriented investment funds into hedge funds.
The high price and high threshold of hedge funds make many people flinch. Generally speaking, the price of the shock is relatively high, in other words, the requirements for investors are very high. The higher the threshold of hedge funds, the more they can attract a series of powerful people to participate in today's games, which is out of reach for those with average economic conditions and little spare money to buy recently.
Presumably this is one of the important reasons why hedge funds can achieve "low risk and high return". After all, to some extent, the fund managers of hedge funds are actually "working" for those powerful people from all walks of life in this way. If this continues, the gap between the rich and the poor will naturally widen.
The fund recruitment methods of hedge funds are relatively secret, and some of them are even shady. As we all know, things placed in the light can make everyone see at a glance and greatly increase their trust. However, financing methods like hedge funds are actually difficult for many people to understand, and no one knows how specific fund managers will operate. Therefore, as for whether hedge funds are really "low risk", it is difficult for us as ordinary people to make an accurate judgment.
At the same time, since there is a "black-box operation" in such an investment method, it will naturally remind everyone of some trading methods or means that may involve violations of law and discipline. This is what we don't want to see, and it is also the one with the highest risk coefficient and the greatest social cost.
The liquidity of hedge funds is small, and redemption is subject to many restrictions, which is essentially its investment risk. Compared with * * * funds, the liquidity of hedge funds is much worse. * * * Funds can be redeemed basically every day, and investors can choose when to redeem them according to the development prospects of funds, so as to minimize losses or maximize profits. However, hedge funds not only have more restrictions and thresholds when purchasing, but also when redeeming. Redemption is not only notified 30 to 90 days in advance, but also the frequency of redemption varies from once a year to once a few months, even once a few years. Just to give hedge fund managers more buffer time to continue to make profits.
So to some extent, although hedge funds attract investors with great fanfare under the banner of low risk and high return, their potential risks may not be as small as advertised.