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Article: Hedge fund magic: hedge funds ... friend or foe? Tim Cockerill provides the answers.(Hedge fund update)
- Article from:
- What Investment
- Article date:
- April 1, 2003
- Author:
CopyrightCOPYRIGHT 2003 Vitesse Media. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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There has probably never been a more misunderstood investment than the hedge fund. For the words 'hedge fund' many investors read 'high risk', a misconception that hasn't been helped by the few hedge funds that have made the headlines in recent years. Take George Soros' Quantum fund, for example, which was responsible for driving sterling out of the ERM. And Long Term Capital Management (LTCM), which collapsed in 1994, creating huge losses fur investors. Not a great advertising angle, admittedly.
To an extent the facts behind the common perception are true: LTCM did collapse, Soros did help to drive sterling out of the ERM and most hedge funds do have high ...