Wiki Update - Hedge Funds

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LadyGeek
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Wiki Update - Hedge Funds

Post by LadyGeek » Wed Dec 21, 2011 1:46 pm

There have been a number of recent threads related to hedge funds. Although the existing wiki article had a number of good references, it was lacking in an entry-level overview which could help new investors understand the concepts discussed in the forum. Problem solved.

Wiki article link: Hedge funds

Can the forum experts please review? I want to be sure that the content is accurate, understood by new investors, and conveys a forum consensus.

Comments / questions / concerns are welcome. Wiki editors should update the page directly.

This is a collaborative effort. Contributors can be seen by clicking on the View History tab of any wiki article (upper right).
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xerty24
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Re: Wiki Update - Hedge Funds

Post by xerty24 » Wed Dec 21, 2011 2:09 pm

Looks pretty good and fair. You might note that Dodd Frank is forcing many hedge funds to register with the SEC, where funds over $150M in assets will shortly have (already?) additional regulatory reporting requirements and scrutiny. In response to this, most of the better large funds have gone entirely private, kicking out all their investors and only trading their owners money. George Soros recently did this.
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Re: Wiki Update - Hedge Funds

Post by LadyGeek » Wed Dec 21, 2011 2:47 pm

Thanks. Wikipedia does mention Dodd Frank, but it doesn't give that perspective. Wikipedia must remain neutral and stick to facts (the wiki follows Wikipedia policy).

If you can find a good reference that states hedge funds have gone private due to Dodd Frank, I'll put it in. OTOH, do you think that would be too much detail?

I just added this thread as a reference, so your comments will be seen regardless - the forum does not have such a restriction.
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Re: Wiki Update - Hedge Funds

Post by xerty24 » Wed Dec 21, 2011 3:52 pm

The real Wiki is much more extensive than the BH one, which was getting me confused for a bit there. Heres the link on Soros kicking out his investors from his Quantum fund explicitly to avoid new regulations. He's not the only one.

http://p.washingtontimes.com/news/2011/ ... kirt-new-/

dang, Soros has something like $25B of his family money in that fund. I guess that's what 20% average returns will do if you start compounding them back in 1970.
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Re: Wiki Update - Hedge Funds

Post by LadyGeek » Wed Dec 21, 2011 4:45 pm

The "real wiki" (Wikipedia) is very comprehensive, but it doesn't contain a basic description that can easily be understood by new investors. I added Dodd-Frank, then your comment (modified) with a link back to your post in this thread. In this way, the reader can see the on-going discussion and different forum perspectives.

Wiki article link: Hedge funds

If this isn't what you intended, just post back and I'll update.
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Re: Wiki Update - Hedge Funds

Post by LadyGeek » Thu Dec 22, 2011 11:43 am

I think the SEC reference used for the Overview (Hedging Your Bets: A Heads Up on Hedge Funds and Funds of Hedge Funds) was prior to Dodd-Frank (see above posts).

Wiki wrote:Unlike mutual funds, however, hedge funds are not required to register with the SEC. Hedge funds typically issue securities in “private offerings” that are not registered with the SEC under the Securities Act of 1933. In addition, hedge funds are not required to make periodic reports under the Securities Exchange Act of 1934. But hedge funds are subject to the same prohibitions against fraud as are other market participants, and their managers have the same fiduciary duties as other investment advisers

How should the above paragraph be rephrased? Perhaps reword with references to the Dodd-Frank section below (U.S. regulation)? I'd like help from an expert on this one.

Wiki article link: Hedge funds
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Re: Wiki Update - Hedge Funds

Post by LadyGeek » Sat Dec 24, 2011 11:18 am

I updated the wiki to refer to Dodd-Frank, but I'd like an expert to review.

Wiki wrote:Unlike mutual funds, however, hedge funds are not required to register with the SEC. Hedge funds typically issue securities in “private offerings” that are not registered with the SEC under the Securities Act of 1933. In addition, hedge funds are not required to make periodic reports under the Securities Exchange Act of 1934. But hedge funds are subject to the same prohibitions against fraud as are other market participants, and their managers have the same fiduciary duties as other investment advisers. (Superseded by the Dodd-Frank legislation, see below.)

Wiki article link: Hedge funds

Comments / questions / corrections are welcome.
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Re: Wiki Update - Hedge Funds

Post by clevername » Sat Dec 24, 2011 12:04 pm

xerty24 wrote:The real Wiki is much more extensive than the BH one, which was getting me confused for a bit there. Heres the link on Soros kicking out his investors from his Quantum fund explicitly to avoid new regulations. He's not the only one.

http://p.washingtontimes.com/news/2011/ ... kirt-new-/

dang, Soros has something like $25B of his family money in that fund. I guess that's what 20% average returns will do if you start compounding them back in 1970.


Has he really been earning those kind of returns for decades? I don't have time to read the whole article and research it right now.

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Re: Wiki Update - Hedge Funds

Post by xerty24 » Sat Dec 24, 2011 12:49 pm

clevername wrote:
xerty24 wrote:dang, Soros has something like $25B of his family money in that fund. I guess that's what 20% average returns will do if you start compounding them back in 1970.


Has he really been earning those kind of returns for decades? I don't have time to read the whole article and research it right now.

Apparently he and Buffett were in the 30 & 30 club for a while (avg 30%+ returns for 30+ years), but the recent decade has been harder and they're down to only 20 & 40 now.
No excuses, no regrets.

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