Summary
Implications: 1.More legislative directive's appear to be the answer to volitilty - Inappropriate at this time! 2.A factor to consifer: The diversion of Private Equity and Venture Capital to a condusive Monetar Marlketplace. A mistake with Long Term consequences. 3.The three (3) Primary Criteria are being overlooked: (A). Investment Returns will change. (B) . The matter of Volatility must be acceptable not regulated and (C). The concept of Risk cannot be avoided. 4.Hedge Funds Strategies vary greatly and cannot guarantee a cushion against a market downturn. 5.The primary objective is a reduction in volatility and risk. There is NO guarantee that the same wii take place!!!!!
Analysis
Commentary:
1.The goal is to capitalize on a Variety of Investment Strategies not eliminate or regulate the marketplace.
2.Hedge Funds vary enormously in terms of Investment Returns and Risks. The expectations/goals should not be set against an unsurmountable objective!
3.Fund Managers are Highly Specialized and trade wihin their are of expertise. They are diligent and have a competitive advantage. Their goal is to enhance returns against current market risks! There is No guarantee of success!
4.Most Hedge Funds have the ability to deliver against non-market Correlated Returns. Timing is a crucial factor , which should not be penalized by any Authority!
5. A Market Downturn cannot be predicted in ALL situations.!!!!!
