Sunak's interview with Piers Morgan

[MolteniArcore]

You what? His job was being involved in hedge funds. All a hedge fund does is place bets on which currency, security or other asset will rise or fall and off-set them against each other to make a profit. He spent his grubby business life literally hedging his bets!

Side-bet as making a bet with a friend. I am aware that he worked with hedge funds and what they do.

 

[Brian Marwood]

You what? His job was being involved in hedge funds. All a hedge fund does is place bets on which currency, security or other asset will rise or fall and off-set them against each other to make a profit. He spent his grubby business life literally hedging his bets!

How do you make a profit if they are off-set against each other?

A hedge fund is essentially a company that invests your money with the intention of making a profit using various means such as long and short positions and looking for arbitrage opportunities. They will take the first xx% or any profits made on your behalf and will take fees too. I remember seeing funds in Singapore whereby the fund would take the first 6% plus fees. They would need to make about 7% before you even saw a dollar of gain which is a tall order. They might hedge a position if it gets scary but not to completely eliminate the risk.

If you want to completely hedge a position you go to a broker, not a hedge fund.

 

[ThePrisoner]

A hedge fund is essentially a company that invests your money with the intention of making a profit using various means such as long and short positions and looking for arbitrage opportunities.

That's what I said. Either your long punt comes good or your short one does, while you try to make a bit on buying and selling some assets between markets. My point was it's all just betting. No different to betting on anything else. Totally unproductive vampire capitalism.

 

[FabioPorkpie]