How can individual investors invest in a hedge fund?
Answers
164 points
Prudent answered one year ago …
Unless you have $1 Million you can't. Learn investing by signing up to investment newsletters like 'tycoon ' and others and decide how much you want to invest in long term value stocks ( 90%) and use short term options trading using good reliable advisors.
Remember never put all your money in single stock, ideally no more than 5% of funds in one investment.
102 points
hannah answered one year ago …
Although you can't actually invest in hedge funds without a lot of money, or as an institutional investor, you should look into 'funds of hedge funds', which is a new trend, aimed at individual investors who want to invest in hedge funds.
Read more from hannah457 points
SallyG answered one year ago …
Prudent, basically I agree with you about diversity (I probably have too many different stocks myself), but my contrarian spirit begs me to respond with two relevent comments from the experts:
Warren Buffet believes that diversity is for the amateur; once you have learned what you are doing, you should concentrate in fewer positions (on the theory that if you best picks are best, why would you invest in something less worthy?)
From Andrew Carnegie: "Put all your eggs in one basket—and WATCH THAT BASKET!" [not sure if emphasis is mine or his]
457 points
SallyG answered one year ago …
Prudent, basically I agree with you about diversity (I probably have too many different stocks myself), but my contrarian spirit begs me to respond with two relevent comments from the experts:
Warren Buffet believes that diversity is for the amateur; once you have learned what you are doing, you should concentrate in fewer positions (on the theory that if you best picks are best, why would you invest in something less worthy?)
From Andrew Carnegie: "Put all your eggs in one basket—and WATCH THAT BASKET!" [not sure if emphasis is mine or his]
