Happy days are here again: The hedge fund industry is here to stay. Reports of its demise have been highly over-reported. Hang on tight, because before we all know it, many new funds will be starting as investor demand increases. I predict that 2011 – is going to be the year of the hedge fund!
This is good news for all in the industry which has been in state of malaise since the events of 2008-2009. The one dark spot on the horizon is the yet-to-be-written regulations that are a direct result of the Financial Reform Bill. Still, these will come out sooner rather then later and I’m sure lawyers will be able to offer managers solutions to any problems that the regulations pose to the way money is managed and made.
Congress, in its infinite wisdom, has come to the realization that investors, regardless of the size of their portfolio, know that it’s silly to invest in products that only go one way. Many members have known this for years; others, unfortunately, learned it only recently as they saw the value of their portfolios plummet. Nevertheless, just because the industry has been saved from extinction this time, don’t think that it’s safe to invest with just anybody who’s called a hedge fund manager. Due diligence, active due diligence, is required and investors should ask the tough questions and demand the answers. And if the answers don’t add up, well, don’t invest or do redeem.
Understanding how money is managed is one of the topics we’ll be talking about in the HEDGEAnswers Strategy Sessions, which launch on September 15. To learn more about the program, go to www.hedgeanswers.com
In the meantime, remember that just because it walks like a duck, acts like a duck and quacks like a duck, it isn’t necessarily a duck. Do due diligence. It’s your money and get in on the discussion – register for HEDGEAnswers today!
Stay out of the heat and drink lots of fluids.
THINGS THAT DRIVE ME CRAZY
I am sick and tired of the phrase, “It’s our policy – therefore it is,” as the clerk on the phone said the other night on a call about a renewal for a three-month supply of a prescription. “My policy is not to accept your policy,” was my reply, and after talking to three other people, the issue was resolved. This sort of thing doesn’t happen just with the people on the phone; it happens in stores and with other service providers who are happy to take our money but refuse to provide us with any service. I know I complain about service a lot; maybe it’s because I expect some – or maybe it’s just my policy.