Assighment Essay Example | Topics and Well Written Essays - 1250 words

Assighment - Essay ExampleIt is through this book that various aspects of the outsmart fund intention argon being addressed, and how trustors should go about resolving the imbalance created by hedge fund managers. It is consecutive that there is a lot of m championy to be made from hedge monetary resource, because the success of most hedge funds proves that opportunities argon present (Lack 42). In an aggressive, fast-changing business environment, individuals are alship canal coming up with ways in which they can benefit from each other. However, the vulnerability of approximately individuals, especially with regards to finances, is being capitalized on by individuals who are willing to stir quick cash from predisposed folks. It is in light of this that the author seek to address some of the aspects that surround hedge funds. The author describes how to tackle the menace that arises from enthronization managers, and how to become stronger when opportunities are likely to o ccur once an individual chooses to invest (Lack 46). Summary of the book According to Simon Lack, investors need to be cautious of the risk hedge funds pose on their unsuspecting nature. It is true that hedge funds can be a lucrative source of capital, but the manner in which people are losing their money is not worth ignoring. First and foremost, the charges required to invest in a hedge fund, agree to the author, tend to always be ridiculous. It is the authors belief that half the money invested by investors could make more returns had they put invested in treasury bills (Lack 51). All these assumptions point or lead to one death that hedge funds are in business for their own interest, and not those of their investors. This bold statement makes one wonder of all that is currently happening to the invested money that happens to find its way into hedge funds. This is also exposit in the book when the author insinuates that investors lose almost 25% of their invested money to the hedge fund industry. The outstanding rate of returns, often hyped by hedge funds, is usually a ploy to have people invest in something that may not necessarily wield high returns (Lack 53). The author believes that even the traditional methods of investment have better luck in having better/higher returns as compared to the glorified schemes of hedge funds. The numbers, as the book suggests, do not add up or are not consistent with what is rattling happening in these organizations. It is this claim that leads to the casting of doubt on the whole hedge fund charade. The disputable manner in which the author divulges information about the hedge fund industry brings to light some of the common mistakes people make, and why it is vital to be open-minded when it comes to deals that are too good to be true. Strengths and weaknesses of the book The manner in which the author divulges this information is done in a simple, much blue-blooded to understand language. Simple examples have be en used to describe scenarios in which individuals are often in, and how they are susceptible to manipulation once the promises of exceptional returns are introduced. No financial or mathematical complexities have been used, so it is easy for even the not so avid reader to comprehend. Moreover, the anecdotes that the author knits into the book form a basis for a relaxed atmosphere where the