Dynamis Fund case study

Moderate risk; mutual funds can earn significantly more money but can also potentially lose more.

think of a mutual fund as a company that brings together a group of people and invests

They are also similar to mutual funds in that they are pooled investment vehicles that accept investors’ money and generally invest it on a collective basis. However, hedge funds are not

Are you aware of how the funds are invested, and level of market risk being taken?

Hedge Fund Manager Manage funds for high net worth individuals, family trusts and pension funds.

Unfortunately, this year also marks the third straight year we report on a hedge fund industry mired in underperformance. However, the woes facing the hedge fund industry are compounded this year, reaching beyond performance, creeping into fund raising and industry expansion. This year is witness to net negative asset flows and actual reductions in the number of hedge fund firms, as firm closures

investors. The primary strategy of this fund is to purchase stakes in public companies with the intention

In this unwelcome role, hedge funds are prey to heightened scrutiny, not only from the media, but also from the Department of Justice, the Securities and Exchange Commission and the

The financial resources and the talented investment management team, provides unique investment strategies to over seven-hundred institutional investors. The management team caters to its high net-worth investors; offering them unique investment strategies not commonly found in a typical hedge fund.

There is one particular aspect about investment management that always intrigued me—the amount of freedom that investors give to investment managers. Take some funds that performs fairly well over a period of time, then investors are more willing to place their money into those funds. There may be given operating parameters for the funds, but down at the very micro-level, the managers still has great discretion over what securities they chooses. Freedom is also present in what strategies managers can choose to employ. Risk can be adjusted according to investor appetite and/or the managers’ investment outlooks. The different combination of these factors give rise to the plethora of funds that are available in the market. In the end, the freedom creates an interesting, and nonetheless, competitive environment to work in.

My experience at Villanova, both as a research fellow and a student was formative of my fascination with investments, hedge funds, and mutual funds. My original interest sparked while working with Dr. Velthuis and performing literature reviews on effects of corporate activism on stock prices, and size effects on hedge fund returns. Since then, classes in Portfolio Theory and

Hedge funds feature returns different from those of mutual funds. The different trading strategies and investment styles are amongst a few factors that explain the difference (Boyson, 2010). The institutional and individual investors create a common pool of funds and employ professional managers to manage the fund. Ideally the manager is compensated from two sets of fees: management fee and performance fee. They impose a management fee based on the size of the asset managed, usually at the rate between 1-2%. A performance fee will be imposed at the rate between 20-30% of the returns on the investments made (lecture notes).

Hedge funds are investment vehicles that explicitly pursue absolute returns on their underlying investments. Hedge Fund incorporate to any absolute return fund investing within the financial markets (stocks, bonds, commodities, currencies, derivatives, etc) and/or applying non-traditional portfolio management techniques including, but not restricted to, shorting, leveraging, arbitrage, swaps, etc. Hedge funds can invest in any number of strategies. Hedge fund managers typically invest money of their own in the fund they manage, which serves to align their interests with

It is a trust which helps investors to achieve their investment goals through the way of funds.

Mutual funds are an easy, convenient way to invest, without having to worry about choosing individual stocks. A mutual fund can be defined as a single portfolio of stocks, bonds, and/or cash managed by an investment company on behalf of many investors. The investment company manages the fund, and sells shares in the fund to individual investors. When one invests in a mutual fund, they become a part-owner of a large investment portfolio, along with all the other shareholders of the fund. The fund manager invests the contributions when shares are purchased, along with money from the other shareholders. Every day, the fund manager counts up the value of all the fund's holdings, figures out how many shares have been purchased by