1. a.Hedge fund provides a better vehicle for earning returns in both up and down markets. b. wide variety of available investment strategies may appeal to customers with high risk tolerance. 2. Hedge fund provides a very dierent compensation/incentive scheme than the typical mutual fund. Based on some 5 !25 of pro"ts based on year end returns. #. $tock picking skills. Because risks can be minimi%ed by hedging. &ith good stock picking skills he can earn pro"t in both the directions of market. a. $et emotion aside and think rationally b. 'bility to take risk and understanding of your risk tolerance and how to manage risk c. (dentify competitive advantage and how can you capitalise on ur competitor e)pertise
1. a.Hedge fund provides a better vehicle for earning returns in
both up and down markets.b. wide variety of available investment
strategies may appeal to customers with high risk tolerance. 2.
Hedge fund provides a very different compensation/incentive scheme
than the typical mutual fund. Based on some 5%-25% of profits based
on year end returns.3. Stock picking skills. Because risks can be
minimized by hedging. With good stock picking skills he can earn
profit in both the directions of market.a. Set emotion aside and
think rationallyb. Ability to take risk and understanding of your
risk tolerance and how to manage riskc. Identify competitive
advantage and how can you capitalise on ur competitor expertise
