2007-08-08 04:32:24 · 2 answers · asked by victorschool1 5 in Business & Finance ➔ Investing
You can not short a hedge fund. You can only invest in them.
Hedge Funds do commonly use shorting as an invetment technique, however. Some do very well, others get killed.
2007-08-08 04:37:41 · answer #1 · answered by euchre_king_03 2 · 0⤊ 0⤋
No good investor would ever "short" a hedge fund.
I don't believe any are trade-able. But.... shorting a hedge fund would be worse than throwing darts at a list of stocks.
One doesn't know from day to day what the holdings are. Holdings can change every day. You're betting against a professional manager. Most with a track record. Yes.... I know there are some big loses (right now) in these funds... that's the nature of these funds. That's why most won't let you invest unless you have over $1,000,000.00 in invest-able assets (that can be risked)..........
Forget this idea. It would be better to trade "Penny Stocks"...... and that's not smart.
2007-08-08 04:49:26 · answer #2 · answered by Common Sense 7 · 0⤊ 0⤋