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    Question: Who Invests in Hedge Funds and Why? Answer: The Primary Investors Are Wealthy Individuals and Institutions. They Typically Have A

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    Sylvan Muzumbwe Makondo
    Hedge funds primarily attract wealthy individuals and large institutions as investors who are seeking higher returns than the broader market. These investors can withstand potential losses to pursue above-market gains. Many are also trying to recover losses from the 2000 stock market crash or help underfunded pension plans cover upcoming retiree obligations through outsized returns, though the risks of hedge funds make this less certain.

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    Question: Who Invests in Hedge Funds and Why? Answer: The Primary Investors Are Wealthy Individuals and Institutions. They Typically Have A

    Uploaded by

    Sylvan Muzumbwe Makondo
    27 views1 page
    Hedge funds primarily attract wealthy individuals and large institutions as investors who are seeking higher returns than the broader market. These investors can withstand potential losses to pursue above-market gains. Many are also trying to recover losses from the 2000 stock market crash or help underfunded pension plans cover upcoming retiree obligations through outsized returns, though the risks of hedge funds make this less certain.

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    financial markets

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    hedging

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    Hedge funds primarily attract wealthy individuals and large institutions as investors who are seeking higher returns than the broader market. These investors can withstand potential losses to pursue above-market gains. Many are also trying to recover losses from the 2000 stock market crash or help underfunded pension plans cover upcoming retiree obligations through outsized returns, though the risks of hedge funds make this less certain.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    27 views1 page

    Question: Who Invests in Hedge Funds and Why? Answer: The Primary Investors Are Wealthy Individuals and Institutions. They Typically Have A

    Uploaded by

    Sylvan Muzumbwe Makondo
    Hedge funds primarily attract wealthy individuals and large institutions as investors who are seeking higher returns than the broader market. These investors can withstand potential losses to pursue above-market gains. Many are also trying to recover losses from the 2000 stock market crash or help underfunded pension plans cover upcoming retiree obligations through outsized returns, though the risks of hedge funds make this less certain.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
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    Download as docx, pdf, or txt
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    Question: Who Invests in Hedge Funds and Why?

    Answer: The primary investors are wealthy individuals and institutions. They typically have a great deal of funds to invest, and can weather significant downturns in their portfolio in their quest for higher returns. Many of these investors are trying to outperform the market to recover losses incurred during the stock market crash of 2000. In addition, many pension funds are realizing they may not have the capital needed to cover the mass of retiring baby boomers, and are trying to outperform the market to cover these obligations. Unfortunately, the risky nature of hedge funds, and their lack of regulation, means these pension funds are less likely to cover their commitments.

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