Strategic Capital Management Paper

667 Words Apr 2nd, 2011 3 Pages
Strategic Capital Management, LLC
-------------------------------------------------
Corporate Valuation 248 Group Project #1
Strategic Capital Management, LLC
-------------------------------------------------
Corporate Valuation 248 Group Project #1

The main benefit of a hedge fund is that an investor can make higher returns with a hedge fund compared to the market returns by using leverage from taking a short position in certain stocks. It is possible for the return for hedge funds to be maintained consistent regardless of whether the market is rising or falling. On average, a hedge fund will typically carry lower risk than the market. However, given the long/short strategy of hedge funds, there still exists a risk for
…show more content…
Creative Computers is showing growth that appears to be sustainable, whereas the growth by Ubid does not appear sustainable due to its negative earnings. Although the IPO for Ubid was successful and the stock price has been rising, the company has significant negative earnings