vinyl siding installation cement board siding lake bluff installing vinyl siding installing vinyl siding northbrook install vinyl siding algonquin .. Chicago Drug testing

Hedge Fund Advertising

Have you seen all those big full page ads for hedge funds in the Wall Street Journal, the Financial Times, Investors Business Daily? You haven't. Maybe they are being drowned out by the regular mutual funds who continually tell you how great they are.

Shucks! I forgot. Hedge funds are not allowed to advertise. I wonder why. Maybe they think that their potential customers are too dumb to know that hedge funds are a poor investment. Could be. The Securities and Exchange Commission is trying to protect investors ? I think?

To be able to buy into a hedge fund the smallest investor must have a net worth of $1,000,000 and an income of more than $200,000 per year. Maybe the SEC doesn't think these folks are bright enough to know a good thing when they see it.

There are other groups that are major investors with the hedge funds. Literally billions of dollars are invested by university endowments, charitable trusts, state and corporate pension plans. Could it be that they have a better return than regular mutual funds? Naw! The media would tell you wouldn't they?

The media is there to report the facts. It is hard to believe that just because a large portion of their income is from advertising revenues of mutual funds that they would be lax about this.

If you were a fund manager and your fund was under performing and it was reported in the local paper, TV, or radio would you pay them to carry your advertising? You sure would not want to be compared with performance of a hedge fund.

What is it that makes the difference of a standard mutual fund with a hedge fund? Why does the smart money gravitate to them? One word. Performance. A regular hedge fund manager is paid on HOW MUCH money he has in his fund and not on how much he makes for the investor. The hedge fund manager is paid a percentage of the PROFITS he makes for the investors. No profit means no bonus so he better do the job or he will be out of a job. Smart money moves. It moves to where the profit is being made.

The SEC will not allow standard mutual fund managers to be compensated in this manner. Their claim is that it will be too dangerous for the small investor. Hog wash! If a fund is losing money the little guy should be selling his current funds like the smart money and finding a better performing fund. None of the media recommend this to the little guy.

My guess is there are enough intelligent fund managers who would like to be paid for performance and would set up no-load funds to attract investors. The SEC seems to think more of the funds than they do of the smaller investors.

It is a shame you can't check the advertising claims of standard mutual funds against the returns of hedge funds.

Copyright 2005

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.

Copyright 2005

In The News:

The POWER of a Proven Stock Investment Plan

When you invest in the stock market for ever-increasing cash... Read More

How To Beat The Mutual Fund Companies At Their Own Game

You'd have had to be living on a desert island... Read More

E-mini Day Trading - Day Trading for Beginners - Stock Market Timing Software

I mean it when I say that. While plastic silverware... Read More

Does Japan Matter?

For the last 12 years we have seen the Japanese... Read More

Dispelling Illusions of the Stock Market

How can you dispel an illusion unless you look directly... Read More

Is Your Garage Full Of Junk?

I have a 2-car garage. There are nice shelves on... Read More

Mid-Cap Stocks: Asset Class with an Identity Crisis

Much like the middle child, mid-cap stocks have long struggled... Read More

Successful Trading ? Taking Profits - Part 2

Suppose your position has made a big move and you... Read More

KISS Formula

There are formulas for just about everything, but it has... Read More

Why Change Funds?

On November 17 I bought 7 different mutual funds and... Read More

Is the Stock Market for You?

Many people would like to diversify their portfolios to expand... Read More

Quality Investment Information: Standing Firm In the Face of Opposition

THERE'S SOMETHING TO BE SAID FOR standing firm in the... Read More

The 1% Solution

You probably know the story of Sherlock Holmes and the... Read More

Successful Trading ? Taking Profits - Part 1

So you're started trading, you bought some positions with your... Read More

Financial Crime

Congress recently passed another new law that is supposed to... Read More

Hedge Funds: the Good, the Bad, and the Ugly

Alfred Winslow Jones started hedge funds in 1949. He was... Read More

The Great Stock Market Secret

When the stock market is going up and all your... Read More

Invest, Be Wrong, and Make Money in the Stock Market

I have been trading for several decades and was an... Read More

Fools Gold

The stock market has been in an up trend for... Read More

Trading For A Living - Part 1

There can't be many traders who haven't at least considered... Read More

Successful Trading ? Establish Your Risk Level

Before you embark upon a journey of trading stocks or... Read More

Trend Trading - Trading Stocks Using Technical Analysis and Swing Trading Strategies

Peter is a professional trader, Paul is not. Peter has... Read More

Humpty Dumpty the Stock Market Falls Down

Humpty Dumpty had a great fall and all the King's... Read More

Political Investing

We have two candidates for president that have really different... Read More

Tips to Finding Other People?s Simple Trading Plans

Did you know you can make money (and a lot... Read More

innovative induction lighting outdoor wall pack lighting Pete's produce ..
innovative induction lighting outdoor wall pack lighting Pete's produce ..