The hedge fund allows the shareholder to receive income — from 13% per annum, without spending personal time on it.
Hedge fund benefits from bull and bear markets
It is easy to invest when the stock market rises; it is a whole other story when it crashes. Investing in ETFs that track market indices, such as the S&P 500, are profitable in “good times.” But when the market falls, investor returns fall in proportion to it. Hedge funds are managed flexibly and are less market dependent.
The hedge fund’s strategy is based on target returns and risks limitations. Of course, any investment is associated with risk and you cannot completely get rid of it. However, it is possible to control its level, including with the help of hedging (protective) instruments.
Variety of investment tools
Hedge fund assets can be stocks, bonds, ETFs, currencies, futures, options, etc. Also, hedge funds can use short positions and leverage. This increases the potential for profitability, plus it additionally ensures investors against risks due to diversification.Профессиональные управляющие
Hedge funds are managed by professionals who know the market deeply and make informed investment decisions.