What is a Hedge Fund?

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  • Опубликовано: 9 июн 2024
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    In this video I talk about what exactly a hedge fund is, how it invests, the structure, the fees, and more. There often tends to be a lot of confusion around hedge funds and so this short video hopefully demystifies many of the myths. Enjoy!
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    TIMESTAMPS:
    00:00 - Intro
    00:23 What is a hedge fund
    01:13 Which asset class do hedge funds fall into
    01:32 A few common hedge funds
    01:57 Why hedge funds are known to be risky
    02:20 Hedge funds vs mutual funds
    02:43 Hedge funds can invest long and short
    03:19 Different types of hedge funds
    03:45 Use of leverage
    05:05 Risk appetite
    05:29 Regulation
    06:18 Fees (how hedge funds make money)
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    What is a hedge fund?
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Комментарии • 155

  • @AfzalHussein
    @AfzalHussein  3 года назад +1

    Join me and invest commission-free with Freetrade. Get started with a free share worth £3-£200: magic.freetrade.io/join/afzal/2112be11

    • @dragon.fromindia3235
      @dragon.fromindia3235 2 года назад

      SHORT SELLING OF GOLD AND SILVER WILL SEE IN THIS WEEK.GOLD WILL FALL TO 1800$, SILVER WILL FALL TO 18$. ETHEREUM WILL RISE LIKE BITCOINS.?

  • @jambalaya3308
    @jambalaya3308 3 года назад +46

    Woww, thanks so much for explaining this clearly. January 2021 I'm here due to the GameStop stuff going on right now in the US markets. Thanks & God Bless:)

    • @AfzalHussein
      @AfzalHussein  3 года назад +6

      Pleasure! Keep an eye out for a GameStop video soon 😉

    • @hOurworld11
      @hOurworld11 3 года назад +2

      Same here, I haven't a clue on this stuff. But I'm about to find out.

  • @mauricenickelson9472
    @mauricenickelson9472 3 года назад +34

    Smart, intelligent and articulate person.

  • @ozohirogi2577
    @ozohirogi2577 4 года назад +44

    Bruv! I have watched a ton of videos trying to get my head around this.. but you are the ONLY ONE that makes sense so far. 👍🏽 really appreciate it 😎

    • @AfzalHussein
      @AfzalHussein  4 года назад +1

      Haha thanks! 🙌🏽👊🏽

    • @JL-xd4cn
      @JL-xd4cn 4 года назад +2

      This guy is incredible.. it's the humble explanation!!! This is helping me with a programme I am doing. Thank you

  • @Levrai10
    @Levrai10 4 года назад +92

    Careers in hedge funds next please.

  • @chetanjunankar3102
    @chetanjunankar3102 4 года назад +8

    Really like the way you simplify difficult topics in so easy way.
    Keep uploading more.
    Loved it .

  • @AfzalHussein
    @AfzalHussein  4 года назад +1

    WWW.SIMPLEY.IO
    Get FREE access to my 'Creating the Perfect Investment Banking CV/Résumé' in-depth course here: skl.sh/3eMerCG
    Get FREE access to my ‘Investment Banking Divisions Explained’ in-depth course here: skl.sh/2BLIKLE

  • @kalungimohammed5850
    @kalungimohammed5850 3 года назад +8

    @4:45 ... Its January 2021. Ma brother this just happened.

  • @hirahasan1996
    @hirahasan1996 4 года назад +4

    Masha'Allah bro! Keep it up and please don't stop making such simplified videos. They are so much easier to understand as compared to other vloggers and websites.

  • @RandageJr
    @RandageJr 4 года назад +3

    Explained in an excellent way as always. Thanks Afzal

  • @ronakmakhija9817
    @ronakmakhija9817 4 года назад +23

    Keep it up afzal, i like the way u explained!

  • @menonguy
    @menonguy 4 года назад +5

    This is really amazing! Could you also explain niche areas like ecm and dcm?

  • @megasweetevelyn
    @megasweetevelyn 3 года назад

    thank you so much!! I really appreciated this video and your ‘Investment Banking Divisions Explained’ it helped me a lot!! keep up the good work

  • @verdipoggi700
    @verdipoggi700 3 года назад +2

    Pretty well explained man, congrats!

  • @Rome.W
    @Rome.W 4 года назад +1

    Great explanation. Would love a video on how to break into hedge funds and the career paths those in hedge funds take.

  • @Roma_approves
    @Roma_approves 3 года назад +1

    Really appreciate your explanation.

  • @perryd43
    @perryd43 2 года назад

    Thank you very much for the Post. I appreciate the fact that you was easy to listen to and to follow. Many blessings neighbor.

  • @nabeelnabster5346
    @nabeelnabster5346 2 года назад

    Superb explanation!! Thanks AH

  • @mbulanzuki4126
    @mbulanzuki4126 3 года назад

    So well explained! Thank you 🙏🏾

  • @poeticprincee9750
    @poeticprincee9750 3 года назад

    This made everything so clear!!!!

  • @shravanivak8898
    @shravanivak8898 4 года назад +15

    VIDEO SUGGESTIONS🚨📢
    1) Careers in Hedge funds and generally in the BUY side of the market.
    2) Stock Broking Companies
    3)Credit Rating Agencies

  • @armitamerrikhi6349
    @armitamerrikhi6349 4 года назад +2

    Thank you for your great content. Could you please make a video explaining the most common vocabulary or terminology used in investment banks? For example '' investing short' or 'the book'. thanks

  • @mohammedmushtaq1969
    @mohammedmushtaq1969 4 года назад +2

    Can you please make a video on Consultancy vs Investment banking or Banking industry for the confused graduates like me. It'll be very helpful, Thank you!!! Love your work!

  • @tamanasafei918
    @tamanasafei918 3 года назад +1

    I came here after running out of Google searches. Thank you so much for simplifying it! Wishing you all the best, from your new subscriber 👍

  • @shobharvind
    @shobharvind 4 года назад

    Thank u so much.. hedge funds were never this easy to understand

  • @dumisanisibanda3080
    @dumisanisibanda3080 4 года назад

    Hi Afzal, thank you for the video, much appreciated. Please advise when the fee is paid on the hedge fund, the beginning or at the end of the year?

  • @younesalla818
    @younesalla818 3 года назад +1

    Nicely explained

  • @MrDungFTU
    @MrDungFTU 4 года назад +3

    Great content! Been following you only the past few months but I’ve learned a lot from your videos! Thanks Afzal

  • @akshaysharma4836
    @akshaysharma4836 4 года назад +2

    Please make a video on FRM, and CFA Vs FRM

  • @chintasmedia8009
    @chintasmedia8009 4 года назад +1

    I am always waiting for your videos

  • @Barca25644
    @Barca25644 4 года назад +1

    Mr Afzal to what extent is financial modelling skills useful in the field of investment banking

  • @BagelzAlt
    @BagelzAlt 3 года назад +5

    Thank you for the perfect explanation 🙏

    • @AfzalHussein
      @AfzalHussein  3 года назад +1

      Thanks for watching! 👍🏽

    • @BagelzAlt
      @BagelzAlt 3 года назад +1

      You just helped me understand what’s happening with Robinhood and Citadel right now.

  • @tuotuo9659
    @tuotuo9659 3 года назад

    Looks so easy to learn mate. Idk if U making it to look like so, or it's something that need to be checked. However, the interest is way higher NOW. Congrats!!!

  • @user-jk6xq7rv2k
    @user-jk6xq7rv2k 3 года назад

    Thank you for the video. Very informative.

  • @Thomasalbertini
    @Thomasalbertini 3 года назад +1

    This video made me want to invest in hedge funds at the same time it was explaining me that I never will be able to.

  • @mainhoondon21
    @mainhoondon21 4 года назад

    Fantastic explanation!

  • @tyboykins7315
    @tyboykins7315 Год назад

    Great Information!

  • @samathajaddu5992
    @samathajaddu5992 3 года назад

    Truly good explanation.
    Thx-Fathima

  • @tylerjosephtt
    @tylerjosephtt 3 года назад

    I learned so much!

  • @Disaster3827
    @Disaster3827 4 года назад +4

    Hey Afzal,
    I'm currently planning to send an application over to Goldman's IBD/AM between 2 regions. I can apply for 3 roles (IBD, AM EMEA and IBD APAC) but only one cover letter is allowed. How would you go about structuring the cover letter?

  • @clucie
    @clucie 3 года назад

    thank you! very useful

  • @murphdog9506
    @murphdog9506 3 года назад +2

    The only thing that confuses me is the negative bets and how they get money from that. (is it basically predicting a company to fail?) I'm really new to all of this so I am probably way off, but everything else made perfect sense.

    • @carelhalog7424
      @carelhalog7424 3 года назад +1

      if they expect a company's shares to decline in value they will sell now or SHORT (using borrowed shares) and buy it back later at a lower price ie sell at 9 buy at 6 later earn 3. hope this helps :-)

  • @amberjohnson1234
    @amberjohnson1234 3 года назад

    Video on asset classes! Especially fixed income

  • @teddyw.charawa8989
    @teddyw.charawa8989 3 года назад

    Can you share on Market microstructure effects on transaction prices?

  • @sabeen-yo8kt
    @sabeen-yo8kt 4 года назад

    Hey there! I didn't know anything about hedge funds but after watching this my concept is clearer than before. I do have a question though. What do you mean by financial conglomerate affiliated hedge funds or FCAHFs for short? Are they hedge funds associated with/put out by companies like Citadel?

  • @balakrishnakale6667
    @balakrishnakale6667 3 года назад

    Great information to have in mind

  • @marilyn9858
    @marilyn9858 4 года назад

    Hii sir, could you please do a video about frm as i am in the first year Bcom and want to do my cfa afterwards so would it be a good decision to start for frm from now ??

  • @kennethho888
    @kennethho888 4 года назад +1

    Facts. Thanks for the great vid sir.

  • @Jeric-gq7pr
    @Jeric-gq7pr 4 года назад +1

    Fantastic video. Thankyou.

  • @parasharamshejal3000
    @parasharamshejal3000 2 года назад

    Nice explanation well

  • @alexandermonzon8165
    @alexandermonzon8165 4 года назад

    Where do I start.learning about this and financing

  • @00kadijah
    @00kadijah 3 года назад

    Newbie here. I feel like this video helped me understand the concept more. How does the firm on Shark Tank compare to a hedge fund?? Thanks for putting out great content!

  • @Raj-wo9ij
    @Raj-wo9ij 2 года назад

    do hedge funds play with liverage of 1:50 or 1:100 with forex like retail trader

  • @fajrisalimi8652
    @fajrisalimi8652 2 года назад

    Nice presentation.

  • @wallstreet710
    @wallstreet710 4 года назад +5

    We tip our hats sir....

  • @judyl.7811
    @judyl.7811 11 месяцев назад

    0:50 pooled investment vehicle.
    1:25 asset class is where you can invest in: fixed income, multiple asset, quant, alternatives. can invest long or short.
    not very regulated. so they could negatively invest in something.
    hedge is protect themselves.
    4:00 they do leverage: invest through borrow money. because they have higher money.
    accredited investor who knows what they're doing. large institutions can do.
    administrative fee 2% and performance fee 20%
    7:55 fee structures.

  • @castronirukshan1071
    @castronirukshan1071 2 года назад

    Any online courses or certification for hedge funds or alternative investment other than CAIA.? Thanks in advance

  • @karanpatel5649
    @karanpatel5649 4 года назад

    THANKS DUDE!

  • @ntnme1730
    @ntnme1730 4 года назад +1

    Thanks

  • @callmekelly9514
    @callmekelly9514 4 года назад

    Great video as always very informative. Can you please do a video on your personal investment strategies? Thank you in advance🙏🏾

  • @raniras8850
    @raniras8850 3 года назад

    Superb Sir 👍

  • @trussme2146
    @trussme2146 4 года назад +1

    Hi Afzal,
    Pretty much unrelated to the video but wanted to know your opinion between the CFA IMC and CISI IAD in terms of a greater prospect.
    IAD had a focus on securities but the CFA has a bigger reputation? Not sure which one to choose
    I'll be starting as a 1st-year student at Lancaster. I've already finished Level 3 in International wealth & investment certificate for CISI.
    Career progression- Fund/Portfolio Management
    Degree- Economics

  • @aslzar
    @aslzar 2 года назад

    Assalomu aleykum
    Again I am glad to watch you. Thank you for informative content.

  • @cowboylemonheadmedia
    @cowboylemonheadmedia 3 года назад

    Thank you

  • @mohozul
    @mohozul 3 года назад

    Any good long term investments to invest in?

  • @donjoseph5506
    @donjoseph5506 4 года назад

    I think you could do some videos on consultancy

  • @9kelly9
    @9kelly9 3 года назад +1

    best explanation on YT

  • @Myke-ix2ui
    @Myke-ix2ui 3 года назад

    Excellent

  • @Kuziai
    @Kuziai 4 года назад +3

    Do Hedge funds Trade Currencies and do they have a Propriatary Trading desk?

  • @tejinderkumar6184
    @tejinderkumar6184 2 года назад +1

    Best brother

  • @Zw_1738
    @Zw_1738 4 года назад +1

    20% fee on principal amount or profits above fixed %age return(5% in this scenario)?

    • @prithvidhyani52
      @prithvidhyani52 3 года назад +1

      profits.. if it was principal the fees would be higher than the profits themselves. so performance fee is a percentage of profits above a certain threshold(5% in this case)

  • @usmanmir7597
    @usmanmir7597 2 года назад

    Hi Afzal
    If a Hedge Fund makes a return of 5-6% per year. Is this considered good?

  • @J.T.A
    @J.T.A 3 года назад +1

    Do only the Portfolio managers make that 2% what about the analyst and associates?

  • @investheavy
    @investheavy 3 года назад

    Attention All. This is an amazing video. Best online investment company for everyone.

  • @emmanuelowolabi12
    @emmanuelowolabi12 3 года назад

    Thank you Hussein. What happens to the Investor's capital when Hedgefunds lose money? Do the hedgefund take any responsibility in the loss?

  • @jamsteracton
    @jamsteracton 4 года назад

    I'd be interested to hear about your personal investments strategy. Would you recommend someone young with little knowledge of the financial markets to put money into index funds?

    • @chrishoggett1375
      @chrishoggett1375 4 года назад

      Jamie Acton the short answer to that would be no

  • @tiktokguruexpert6688
    @tiktokguruexpert6688 4 года назад

    Is it possible to owed a savvy hedge fund where up to $10000 can be invested by the investors

  • @jainambarot4828
    @jainambarot4828 4 года назад +1

    Are jobs on wall street really decreasing? next video on this please!!

  • @Thesussysuscat
    @Thesussysuscat 3 года назад +13

    You know why I here

  • @kartikarya9644
    @kartikarya9644 3 года назад +2

    Great explanation man!
    Earned yourself a sub!

  • @Falcon23ize
    @Falcon23ize 4 года назад

    Are those all your books ?

  • @JohnSmith-sb5ym
    @JohnSmith-sb5ym 4 года назад

    Just subscribed bro and liked. Love your breakdown I'm also from The UK, London. My plan is to launch a fund next year and was wondering if you had knowledge on how to get investment capital either from retail or institutions. Regardless we have to meet up face to face !

    • @c4sp3rghost38
      @c4sp3rghost38 4 года назад

      I'm doing exactly the same thing. Absorbing a ton of info and knowledge. If you wanna team up let me know as hedge funds aren't just built with 1 person. Also I'm in London

  • @victorsingh878
    @victorsingh878 4 года назад +1

    Brilliant

  • @ebunlois3151
    @ebunlois3151 3 года назад

    What does it mean to go "long or short"?

    • @lenas6034
      @lenas6034 3 года назад

      I‘m not sure but i believe to go short would mean to be more active with your investments and focusing on fast success. Selling and Rebuying in a short timespan. To go long on the other hand implies a more sat-back way of handling your investments, you aim for long term success so your investment pays off after several years of waiting

  • @hacker010010101
    @hacker010010101 4 года назад +1

    Thanks! Can you make more complex videos as well though? I have been in the financial world for years but almost all the videos are superficial. For example perhaps there can be made a video about how to set up a hedge fund in a legal way, how do hedge funds go about picking financial instruments etc

  • @lloydielloydie821
    @lloydielloydie821 3 года назад

    Big up...

  • @martinhagenbruch286
    @martinhagenbruch286 4 года назад

    Hey Afzal, great video!
    Can you do a video about prep courses?
    For exampme if there is a higher chance of getting an internship if you got some certificates like these from FE Training, WallStreetPrep or Corporate finance institute.

  • @narc7072
    @narc7072 4 года назад

    I think Business cards would be an interesting video

    • @AfzalHussein
      @AfzalHussein  4 года назад

      What about them?

    • @narc7072
      @narc7072 4 года назад

      @@AfzalHussein Like at what point of your career you should make them, what general policies there are when making them etc.

  • @shubhkatiyar2583
    @shubhkatiyar2583 3 года назад

    Where are from you...??

  • @emzrahman6885
    @emzrahman6885 3 года назад +1

    are hedge funds haram? Please let me know and you mentioned the word betting a lot. Is it gambling money or is there genuine analysis done when executing the trades? Regards

    • @RA-gg4pj
      @RA-gg4pj 3 года назад

      This what my main concern is

  • @donmcmahon3889
    @donmcmahon3889 3 года назад

    7

  • @supercars276
    @supercars276 4 года назад

    Would getting a graduate role be less subscribed than a position at a bank like Goldman

    • @kayshiva6616
      @kayshiva6616 4 года назад

      Supercars 27 you can get graduate role at Goldman aswell....

  • @kiefer8083
    @kiefer8083 4 года назад

    love this guys channel hes fuckin awesome

  • @JavierHernandez-ln5by
    @JavierHernandez-ln5by 3 года назад +4

    Who can recommend a reliable and trustworthy trader that I can learn from ..I need to be mentored

    • @oscarmiguel316
      @oscarmiguel316 3 года назад

      I made a lot of profit trading with Carlos Beckham his techniques and strategies are too easy to learn I recommend him to all beginners

    • @ivanwalter596
      @ivanwalter596 3 года назад

      Wow I'm thrilled to see his other investors online
      ..I never knew he was this famous... Last week I made profit of $11300 from an initial deposit of $1000.. using his strategies ..it felt like magic

    • @JavierHernandez-ln5by
      @JavierHernandez-ln5by 3 года назад

      Wow I'm happy to see good reviews.... How can I contact him

  • @chokeonthis2932
    @chokeonthis2932 3 года назад

    Do you buy a book a day, sheeeet, I sub now yes.

  • @RealestatePape
    @RealestatePape 4 года назад

    That Maxwell intro 🤦🏼‍♂️

  • @olismith657
    @olismith657 4 года назад +6

    This is not really accurate. A hedge fund is a specific type of legal structure and not strategy. You can have long/short hedge funds and UCITS funds that can (and do) follow the exact same mandate. The only difference being the risk and regulatory burden as dictated by the legal structure.

  • @Alice12r
    @Alice12r 3 года назад +1

    I'm intrested in you channel

  • @teddyw.charawa8989
    @teddyw.charawa8989 3 года назад

    Thou knowest what you ye are explaining.

  • @krishant
    @krishant 4 года назад +1

    ♥️👍🏻