Investment Risks

Hedge Fund Investment Risks

This PowerPoint presentation outlines the investment risks that hedge fund investors face and methods for reducing these risks. Operational problems often lead to hedge funds failing and this guide provides a list of these operational risks with a short explanation. It includes: age and stability, capacity, liquidity, organizational structure, counter-parties, operational costs and a manager's utility (risk aversion).

These are simple factors to consider when selecting a hedge fund. The author points out that there are inherent risks that the investor should realize like illiquidity and often slippage in the investments. A suggested way to reduce risk is to have frequent meetings with the manager and continually monitor the manager and operations. This will help reduce risk and minimize costs on the investment.

Resource: Risks of hedge fund investing & portfolio management

- Richard

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Tags: Investment Risks, Hedge Fund Investment Risks, Risks of Hedge Fund Investing, Investments Risk, Investments Risks, Risks of Investments, Risks associated with investments, equity investment risks, international investment risks

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