- This topic has 2 replies, 2 voices, and was last updated Nov-189:33 am by
.
-
Posts
-
-
Up5
Well first of all thanks for the response, as you can tell im pretty much lost when it comes to the industry seeing as i have no experience. So you say a HF manager tries to increase risk profile? I thought the idea was to beat the market on a risk neutral basis (eg: Beta=1) no?
I definitely understand when you say that a manager should invest to his clients needs, and that definitely is worthwhile and useful to society, but thats no hedge fund…
and definitely makes sense that its not as rock-star as i thought, would you be able to tell me what the wealth management industry is like?
Thanks!
-
Up2
Heavy. I used to be in wealth management, and when it comes to clients’ personal approaches to managing their investments, there is about a 60-40 split (in my firm) when it comes to active vs passive investing. Nonetheless, even for firm passive investment believers, there is still a lot of value in creating funds and investment approaches to suit clients personal circumstances.
A HF manager claiming to beat the market by actively picking stocks allows investors to try and increase their return while increasing their risk profile. So no, I don’t think what you’re considering is ‘pointless’. Just maybe not as rockstar as you thought it was? :smiley:
-
- You must be logged in to reply to this topic.