Hedge funds have not been doing well since 2009 as there are nothing to
hedge in a rising market. A few are doing great. Learn what and why they
are doing great. The reasons are obvious by now. The successful ones
unloaded energy stocks and Chinese stocks after the crisis but before
the big losses. Some correctly shorted these problem sectors afterwards.
However, I still advise not to buy hedge funds
for the average investor: 1. The better ones are not opened to new
investors or ask for a king's ransom . 2. On the average (including the
closed hedge funds), they're not doing good after the high fees. 3. Even
the good one last year could be a bust this year as they're betting
high. Examples abound.
To make money, you need to
depend on yourself. To start, play simple market timing. Buy value
stocks when the market is not risky. Be patient. Evaluate your bought stocks every 6 months or so
and act accordingly. Following these simple 'techniques' (or common
sense), you should at least beat the market (or SPY) in the long run.
Proven and being practiced by many successful retail investors among us.
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For more of my reasoning, check out the book described next. It has 800
pages (6*9) for $9.99. It could be the best $10 you ever spend.
The above is an abstract from my book "Complete the Art of Investing" which is available from Amazon.
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