Sunday, 25 March 2012

Wealthy hedge fund managers ignore Apple shares

Apple shares have risen 47% year to date (1 Jan to 26 March 2012) and yet the best performing hedge fund managers all of which have done over 30% (the best has done over 40%) do not hold the stock. 

Apple shares are one of the most popular holdings among fund managers and hedge fund managers alike and yet the best three performing hedge fund managers, all of whom are billionaires in their own right do not currently hold the stock. Do they know something us mortals do not?
To see where the smart (wealthy) money is invested check out this link

Why passive funds are not low risk

I have a love - hate relationship with index funds.  On the one hand with Scottish heritage I do not like paying fees and will generally object to the excessive and sometimes offensive fees charged by actively managed funds - passive funds provide a low cost alternative to actively managed funds. 

On the other side of the coin, the capitalist in me likes growing my terminal wealth.  Why would I want to maintain a long only (passive) exposure in a specific market at a time when the world is going to hell in a hand bag?  Some active managers are able to go to cash thereby protecting me as best they can against losing money. 

So how risky are passive (index) funds?  To find out open the attached link why passive funds are not low risk