Bogleheads

[tomser]

knowledge is power and need education.

By the way when you say private equity and hedge funds what are they ?and how it works and where the money coming from and how they invest so on?? I know a little bit but not completley.

best wishes always

tom

[gbs]

Tom,

You can read about private equity in our Library here:

http://www.diehards.org/forum/....0872#20872

For hedge funds you can gogle for any of these papers:

1.Carl Ackermann, Richard McEnally, and David Ravenscraft, "The Performance of Hedge Funds: Risk, Return and Incentives," Journal of Finance (June 1999).

2.Greg N. Gregoriou, "Hedge Fund Survival Lifetimes," Journal of Asset Management (December 2002).

3.W.K.H. Fung and D.A. Hsieh, "Performance Characteristics of Hedge Funds and CTA Funds: Natural vs. Spurious Biases," Journal of Financial and Quantitative Analysis (35:291-307, 2000).

4.Pieter Jelle van der Sluis and Nolke Posthuma, "A Reality Check on Hedge Funds," http://papers.ssrn.com/sol3/de....id=438840.

5.Stephen J. Brown, William N. Goetzmann, and James Park, "Career and Survival: Competition and Risk in the Hedge Fund and CTA Industry," Journal of Finance, October 2001

6.M.J. Howell, "Fund Age and Performance," Journal of Alternative Investments (Fall 2001).

7.Chris Brooks and Harry M. Kat, "The Statistical Properties of Hedge Fund Index Returns and Their Implications for Investors," Journal of Alternative Investments (Fall 2002).

8.Gaurav S. Amin and Harry M. Kat, "Welcome to the Dark Side: Hedge Fund Attrition and Survivorship Bias Over the Period 1994-2001. University of Reading, ISMA Centre, Working Paper, December 2001.

9.Harry M. Kat, professor of risk management and director of the Alternative Investment Research Centre at the Cass Business School, City University, London, "10 Things That Investors Should Know About Hedge Funds," Journal of Wealth Management (Spring 2003).

10.Stephen J. Brown, William N. Goetzmann and Roger G. Ibbotson, "Offshore Hedge Funds: Survival and Performance, 1989-95," Journal of Business, January 1999.

11.Journal of Finance, "The Performance of Hedge Funds: Risk, Return and Incentives" (June 1999).

12.Gaurav S. Amin and Harry M. Kat, "Hedge Fund Performance 1990-2000: Do the "Money Machines" Really Add Value?" Journal of Financial and Quantitative Analysis (June 2003)

13. Vanguard has a white paper on hedge funds that's pretty good too:
http://institutional.vanguard.....012005.pdf

14.Roger G. Ibbotson and Peng Chen, "Sources of Hedge Fund Returns: Alphas, Betas, and Costs," Yale ICF Working Paper no. 05-17, June 2005.

15.Stephen J. Brown, William N. Goetzmann and Roger G. Ibbotson, "Offshore Hedge Funds: Survival and Performance, 1989-95," Journal of Business, January 1999.

16.Burton G. Malkiel and Atanu Saha, "Hedge Funds: Risk and Return." May 17, 2005.

17.Greg N. Gregoriou, "Hedge Fund Survival Lifetimes," Journal of Asset Management (December 2002).

18.Gaurav S. Amin and Harry M. Kat, "Hedge Fund Performance 1990-2000: Do the "Money Machines" Really Add Value?" Journal of Financial and Quantitative Analysis (June 2003).

19.Harry M. Kat, "10 Things That Investors Should Know About Hedge Funds," Journal of Wealth Management (Spring 2003).

20.Stephen J. Brown, William N. Goetzmann and Roger G. Ibbotson, "Offshore Hedge Funds: Survival and Performance, 1989-95," Journal of Business, January 1999.

21.Harry M. Kat, "10 Things That Investors Should Know About Hedge Funds," Journal of Wealth Management (Spring 2003).

22.Nolke Posthuma and Pieter Jelle Van Der Sluis, "A Reality Check on Hedge Fund Returns," July 2003.

Regards, gbs

[tomser]

Hi gbs

I just simply wanted to know what is hedge fund and private equity that is it .


thank you
tom

[gbs]

Tom,

From the first link in the library:

Private Equity

What does it Mean? Equity capital that is made available to companies or investors, but not quoted on a stock market. The funds raised through private equity can be used to develop new products and technologies, to expand working capital, to make acquisitions, or to strengthen a company's balance sheet.

Investopedia Says... The average individual investor will not have access to private equity because it requires a very large investment.

For hedge funds you might want to start with this paper:
13. Vanguard has a white paper on hedge funds that's pretty good too:
http://institutional.vanguard.....012005.pdf

Definition

A fund, usually used by wealthy individuals and institutions, which is allowed to use aggressive strategies that are unavailable to mutual funds, including selling short, leverage, program trading, swaps, arbitrage, and derivatives. Hedge funds are exempt from many of the rules and regulations governing other mutual funds, which allows them to accomplish aggressive investing goals. They are restricted by law to no more than 100 investors per fund, and as a result most hedge funds set extremely high minimum investment amounts, ranging anywhere from $250,000 to over $1 million. As with traditional mutual funds, investors in hedge funds pay a management fee; however, hedge funds also collect a percentage of the profits (usually 20%).

A more expanded presentation here:
http://www.hedgeco.net/hedge-fund-definition.htm

3-rd hit on gogle for "hedge funds definition".
Regards, gbs

[Random Musings]

Wait a second.... in the first post you said that ....

[tomser]

thank you for all your reply
very good information

yes, I will promis to drink water

best wishes
tom

[tomser]

GBS

thank you for your taking time and explaning it to me.

I learned lots from you and I really did not know much about those funds.

thank you once again

best wishes
tom

[pkcrafter]

I think you have everything you need to know about private equity and hedge funds. Stay away from them.

Paul
_________________

[Barry Barnitz]

Hi Tom:

I have aggregated a sampling of papers on hedge funds in my posting at Asset Class Reader: Hedge Funds.

regards,
_________________

blb
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