#61 Re: I got a job
Posted: Sun Jul 17, 2016 4:25 pm
"hedge fund" is just a name for a small investment company - it's become a pejorative term, almost insulting, because of the anti-social behaviour of just a very few of the 1000s out there.
I've worked for a couple - basically, they take investors' money and try to get the best return they can within set parameters, e.g. only certain market sectors (oil&gas, industrial, general), only certain types of instruments (long-only, bonds,FX etc.) and regions (EMEA, APAC, etc.). Each hedge fund may actually be made up of several funds, each with its own parameters - investors chose which fund to put their money into - normally you are investing in the management team of that fund - the individuals that make the investment decisions for the assets under management. There are also "funds of funds" whereby a fund invests in other funds (no circular investments!).
Fundamentally nothing wrong with them. Some got a bad name for seeming to exploit unfortunate circumstances, e.g. short-selling during the 2009/10 crisis etc. but they are regulated like all financial services companies - if people have issues with what funds get up to, they should blame the regulators. Most in these companies are not fund managers, i.e. they don't make investment decisions - they are ordinary folk - accountants, IT, business analysts, project management, client relationship, HR - just like any other company.
One I previously worked for, the main guy gave 50% of his income to charity and had done so since he started work as a junior in the City many years before. One year, that 50% was nearly £20 million - he never told anyone - only those in the business knew. I have absolutely no problem with that. Almost everyone I've worked with in the hedge fund world has been a decent, ordinary, Joe with the same morals as everyone else. They are no different.
This lot are backed by an individual with a huge social drive - very discrete, very private, but driven by philanthropy. He makes no fuss, just is a good guy.
I've worked for a couple - basically, they take investors' money and try to get the best return they can within set parameters, e.g. only certain market sectors (oil&gas, industrial, general), only certain types of instruments (long-only, bonds,FX etc.) and regions (EMEA, APAC, etc.). Each hedge fund may actually be made up of several funds, each with its own parameters - investors chose which fund to put their money into - normally you are investing in the management team of that fund - the individuals that make the investment decisions for the assets under management. There are also "funds of funds" whereby a fund invests in other funds (no circular investments!).
Fundamentally nothing wrong with them. Some got a bad name for seeming to exploit unfortunate circumstances, e.g. short-selling during the 2009/10 crisis etc. but they are regulated like all financial services companies - if people have issues with what funds get up to, they should blame the regulators. Most in these companies are not fund managers, i.e. they don't make investment decisions - they are ordinary folk - accountants, IT, business analysts, project management, client relationship, HR - just like any other company.
One I previously worked for, the main guy gave 50% of his income to charity and had done so since he started work as a junior in the City many years before. One year, that 50% was nearly £20 million - he never told anyone - only those in the business knew. I have absolutely no problem with that. Almost everyone I've worked with in the hedge fund world has been a decent, ordinary, Joe with the same morals as everyone else. They are no different.
This lot are backed by an individual with a huge social drive - very discrete, very private, but driven by philanthropy. He makes no fuss, just is a good guy.