Hedge Funds: Too Good to be True?

This post is a video post from Sensible Investing TV based out of the United Kingdom.   European investors are moving more and more to the investment philosophy  that we have believed in for many years and is how we invest our clients money.

This channel uses videos to educate investors about the benefits of using firms such as Dimensional Fund Advisors (DFA) that we favor for our clients’ investments.  In this 4 minute video, Brit Robin Powell describes the hedge fund industry and nicely describes why we do not recommend or invest our clients in hedge funds.

Hedge funds have been growing in popularity for the last 15 years, but should they be included in a well-balanced portfolio?

United Kingdom double decker busOn the face of it, the focus of the hedge funds to make money and the flexibility they seem to offer may be appealing, but there’s more to hedge funds than meets the eye. By 2008, hedge funds had amassed over $2 trillion under management.

But the crash of that year cancelled all the profits they had made in the previous decade. Things haven’t improved much since then; and that’s before you factor in the typical 2% management fee and 20% performance fee.

Click below to begin the video:

Are Hedge Funds Too Good to Be True

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The foregoing content reflects the opinions of Crimmins Wealth Management and is subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. Past performance may not be indicative of future results. All investing involves risk, including the potential for loss of principal. There is no guarantee that any investment plan or strategy will be successful.

About Dan Crimmins

Dan Crimmins, co-founder of Crimmins Wealth Management, is a financial coach and fee only financial planner. Have a financial question? ASK DAN


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