Comments by "Magic Beans" (@Magic_beans_) on "What Exactly Are Hedge Funds (And Why Are They Always Causing Problems)?" video.

  1. ⁠ @nateosman5915 That’s a big one. Folks like you and I look at absolute returns, but someone with millions-plural of dollars doesn’t need to grow it aggressively. Some do of course because of greed or ego, but the number one thing is just to not lose money. They care about risk-adjusted returns. That’s what hedge funds have historically done well. They’re less volatile than stock-based mutual funds and they’ve outperformed during bear markets. It’s also worth noting that most investors also don’t put all their money in hedge funds, just some so their wealth isn’t entirely tied to the stock market. The normal-folks equivalent would be keeping a chunk of money in bonds or cash equivalents.
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