Hedge Funds Explained by Richard Cayne of Meyer International, Thailand
While mutual funds happen to be the most popular investment vehicles these days, hedge funds have proven to be a lucrative option for many. Richard Cayne of Meyer International Thailand explains that hedge funds are essentially very similar structured companies to mutual funds, which pool together your money and then reinvest them into various financial instruments. However, these instruments seek to earn you returns by offsetting financial risks and generally derive their value from underlying assets. Richard Cayne of Meyer International Thailand says that derivates, options, futures, contracts as well as collateralized debt obligations make for good examples of investment vehicles that are used in case of hedge funds.
Richard Cayne of Meyer International Thailand advises that though hedge funds promise much better returns than the average market equity fund, they may entail higher risks as well. Hedge funds are most suited forms of investments for those looking to balance out their equity and bond portfolios as they diversify and hedge risk to ones overall portfolio. Richard Cayne of Meyer International Thailand further adds that hedge funds should not be viewed as absolutely unsafe investments simply because they are more flexible, since the manner in which they operate offer investors a safety cushion via their hedging strategies. Hedge fund managers are offered compensations in sync with the amount they earn you as returns. When compared to mutual funds, this proves to be a more lucrative arrangement since mutual fund managers are paid a fee regardless of the performance of their fund. Richard Cayne of Meyer International Thailand says that such a compensation arrangement drives hedge fund managers to always try and outperform the market, in turn earning you better returns than most mutual funds.
According to Richard Cayne of Meyer International Thailand, hedge fund managers specialize in the optimization of sophisticated derivates, which allows them to profit even when the general trend of the stock market might be on a decline. In order to profit from hedging, fund managers have to get two things right, leverage and timing. While leverage is attained by controlling large amounts of commodities or stocks with small amounts of money, the right timing is achieved by predicting the market’s rise or fall and then cashing out at the most opportune time. By balancing the synergies of leverage and timing, hedge fund managers are able to make returns that outshine the market. Richard Cayne of Meyer International Thailand further adds that since hedge funds are more flexible than traditional mutual funds, fund managers can easily invest in such speculative financial vehicles and earn their clients higher returns in a more efficient manner.
Richard Cayne of Meyer International is currently based in Bangkok Thailand and is Managing Director of the Meyer Group of companies which part of Asia Wealth Group Holdings Ltd a UK stock market listed financial services holding company.
Richard Cayne of Meyer International Thailand advises that though hedge funds promise much better returns than the average market equity fund, they may entail higher risks as well. Hedge funds are most suited forms of investments for those looking to balance out their equity and bond portfolios as they diversify and hedge risk to ones overall portfolio. Richard Cayne of Meyer International Thailand further adds that hedge funds should not be viewed as absolutely unsafe investments simply because they are more flexible, since the manner in which they operate offer investors a safety cushion via their hedging strategies. Hedge fund managers are offered compensations in sync with the amount they earn you as returns. When compared to mutual funds, this proves to be a more lucrative arrangement since mutual fund managers are paid a fee regardless of the performance of their fund. Richard Cayne of Meyer International Thailand says that such a compensation arrangement drives hedge fund managers to always try and outperform the market, in turn earning you better returns than most mutual funds.
According to Richard Cayne of Meyer International Thailand, hedge fund managers specialize in the optimization of sophisticated derivates, which allows them to profit even when the general trend of the stock market might be on a decline. In order to profit from hedging, fund managers have to get two things right, leverage and timing. While leverage is attained by controlling large amounts of commodities or stocks with small amounts of money, the right timing is achieved by predicting the market’s rise or fall and then cashing out at the most opportune time. By balancing the synergies of leverage and timing, hedge fund managers are able to make returns that outshine the market. Richard Cayne of Meyer International Thailand further adds that since hedge funds are more flexible than traditional mutual funds, fund managers can easily invest in such speculative financial vehicles and earn their clients higher returns in a more efficient manner.
Richard Cayne of Meyer International is currently based in Bangkok Thailand and is Managing Director of the Meyer Group of companies which part of Asia Wealth Group Holdings Ltd a UK stock market listed financial services holding company.