John Edwards worked at a hedge fund.....

[Vegas]

......to learn about poverty??

http://www.foxnews.com/story/0,2933,270796,00.html

Democratic presidential candidate John Edwards — the multimillionaire who has made fighting for poor people a key campaign issue — says he worked for a hedge fund to learn how financial markets relate to poverty. "It was primarily to learn," Edwards said, "but making money was a good thing, too."

Edwards won't say how much he earned as a paid consultant to Fortress Investment Group. But Fortress was the single biggest employer of Edwards' donors during the first three months of this year — with more than $67,000 in contributions.

Hedge funds are group investments that are not as tightly regulated as traditional mutual funds. Edwards says his job with fortress was a complement to his position as the head of a poverty center at the University of North Carolina.

[abreu]

I've been trying to understand more about the markets, so bear with me.

A hedge fund is a private fund open to accredited investors, but not regulated by the SEC or NASD. Correct?

So, basically, a bunch of rich people throw their money together and someone manages it in hopes of gaining a higher return than usual? But how do they have higher returns? Diversification?

[Vegas]

I've been trying to understand more about the markets, so bear with me.

A hedge fund is a private fund open to accredited investors, but not regulated by the SEC or NASD. Correct?

So, basically, a bunch of rich people throw their money together and someone manages it in hopes of gaining a higher return than usual? But how do they have higher returns? Diversification?

You are correct about what the fund is. They can get higher returns by doing riskier strategies such as short selling or option trading.

[hannitykillspuppies]

I've been trying to understand more about the markets, so bear with me.

A hedge fund is a private fund open to accredited investors, but not regulated by the SEC or NASD. Correct?

So, basically, a bunch of rich people throw their money together and someone manages it in hopes of gaining a higher return than usual? But how do they have higher returns? Diversification?


diversification limits your risks, reducing the opportunity for greater returns, so no. they generally go with higher risk strategies, increasing the opportunity for greater returns.