ok so everyday I hear about hedge fund this and that. I looked it up on wiki and can only come to the understanding that it is something limited only to the rich and powerful. As the name implies, hedge funds often seek to hedge some of the risks inherent in their investments using a variety of methods, most notably short selling and derivatives….. ok so this all sounds Greek to me.
Form this what I gather is:
If I had a hundred dollars and want to put that money to work one way is to invest it into a Hedge fund in which the investment manager will help me invest it into a variety of things. If A fails then there is still B and C and so fort. Is this right or is there more to it ????
If this is the case then that means I’m risking my money to some person who can basically take my money to Vegas and play Rulet with it. If Red doesn’t pay off then there is black or number 36 …… and the pay out depends on what is offer a ratio of lets say 3:1
So the way money is made depends on how much money one invests on what color and what number.
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