What is a Hedge Fund?

What is a Hedge Fund?

In this video I talk about what exactly a hedge fund is, how it invests, the structure, the fees, and more. There often tends to be a lot of confusion around hedge funds and so this short video hopefully demystifies many of the myths. Enjoy!

TIMESTAMPS:

00:23 What is a hedge fund
01:13 Which asset class do hedge funds fall into
01:32 A few common hedge funds
01:57 Why hedge funds are known to be risky
02:20 Hedge funds vs mutual funds
02:43 Hedge funds can invest long and short
03:19 Different types of hedge funds
03:45 Use of leverage
05:05 Risk appetite
05:29 Regulation
06:18 Fees (how hedge funds make money)

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Comments

Danzell Granderson says:

Are those all your books ?

Krishanth R says:

♥️👍🏻

Rafael Quinones says:

I really enjoyed your hedge fund video…you did a good job of simplifying it all. I look forward to your other videos. Cheers!

Jainam Barot says:

Are jobs on wall street really decreasing? next video on this please!!

Oli Smith says:

This is not really accurate. A hedge fund is a specific type of legal structure and not strategy. You can have long/short hedge funds and UCITS funds that can (and do) follow the exact same mandate. The only difference being the risk and regulatory burden as dictated by the legal structure.

Ishan Das says:

How to get into a Hedge Fund, and what are the job profiles, what should be the qualifications(How is FRM Exam relevant for this industry)? Next video please!

Armita Merrikhi says:

Thank you for your great content. Could you please make a video explaining the most common vocabulary or terminology used in investment banks? For example '' investing short' or 'the book'. thanks

Narc says:

I think Business cards would be an interesting video

Aseem Khunger says:

20% fee on principal amount or profits above fixed %age return(5% in this scenario)?

DisasterC2 says:

Hey Afzal,

I'm currently planning to send an application over to Goldman's IBD/AM between 2 regions. I can apply for 3 roles (IBD, AM EMEA and IBD APAC) but only one cover letter is allowed. How would you go about structuring the cover letter?

Adnan Uddin says:

Afzal I have emailed you and messaged you on insta. Need your help. Please can you reply back ASAP. Thanks a lot!

Shravani Vakkanthula says:

VIDEO SUGGESTIONS🚨📢
1) Careers in Hedge funds and generally in the BUY side of the market.
2) Stock Broking Companies
3)Credit Rating Agencies

Don Joseph says:

I think you could do some videos on consultancy

Istihsan Bakht says:

Hi Afzal,
Pretty much unrelated to the video but wanted to know your opinion between the CFA IMC and CISI IAD in terms of a greater prospect. 

IAD had a focus on securities but the CFA has a bigger reputation? Not sure which one to choose

I'll be starting as a 1st-year student at Lancaster. I've already finished Level 3 in International wealth & investment certificate for CISI.

Career progression- Fund/Portfolio Management
Degree- Economics

TheRandage says:

Explained in an excellent way as always. Thanks Afzal

Lemur says:

Thanks! Can you make more complex videos as well though? I have been in the financial world for years but almost all the videos are superficial. For example perhaps there can be made a video about how to set up a hedge fund in a legal way, how do hedge funds go about picking financial instruments etc

Marilyn Gomes says:

Hii sir, could you please do a video about frm as i am in the first year Bcom and want to do my cfa afterwards so would it be a good decision to start for frm from now ??

Luxus Häuser says:

Nice video, good insight on Hedge Funds. Btw there are better ways to request subscription/likes/comments, send us an email and we'll send you a couple of Youtube links.

Martin Hagenbruch says:

Hey Afzal, great video!
Can you do a video about prep courses?
For exampme if there is a higher chance of getting an internship if you got some certificates like these from FE Training, WallStreetPrep or Corporate finance institute.

Andreek Kelly says:

Great video as always very informative. Can you please do a video on your personal investment strategies? Thank you in advance🙏🏾

Romeo Waldo says:

Great explanation. Would love a video on how to break into hedge funds and the career paths those in hedge funds take.

Jamie Acton says:

I'd be interested to hear about your personal investments strategy. Would you recommend someone young with little knowledge of the financial markets to put money into index funds?

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