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How the Coronavirus Crisis Affected Hedge Funds

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Hedge funds always seek positive returns in all market contexts, but this crisis has also affected them . The global universe of hedge funds lost an average of 9% in March, and 10.5% in the accumulated in the first quarter, according to data compiled by the experts from Willow Creek Capital Management . These results are worse than those exhibited in times of maximum stress in the financial markets, such as in September and October 2008. In those months, hedge funds fell 6.7% and 8.1% respectively.

Definition of Hedge Fund

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A hedge fund is a private investment company that manages third-party securities to cover them from possible risks and / or increase their value. Historically, hedge funds appeared after World War II at the hands of sociologist and journalist Alfred Winslow Jones, who founded, the Jones Hedge Fund in 1949. Although it is customary to hear about hedge funds as a homogeneous instrument, in reality, this concept denotes a varied typology in the world of high-risk financial investment. Indeed, a hedge fund can be either an investment fund, or another type of company.  

The Role of a Hedge Fund Manager

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Nowadays, hedge funds are mentioned hundreds of times daily in the media. Whether you are looking for a career as a hedge fund manager, or you’re just looking to learn more, this guide provided by Willow Creek Capital Management will help you get off to a strong start. Hedge fund is the pooling of investments from high net worth individuals. The objective of a hedge fund is to maximize investor returns and reduce risk. The aim is to make money in spite of the market conditions. The funds use investment strategies as long, short, leverage and derivative positions. These funds invest in equities, bonds, and commodities.They invest in local as well as international markets.

China Starts Its Journey to Open Exchange Market

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China’s stock market is over a century old and it’s currently the second biggest market in the world, just behind the U.S. Despite its high-ranking, foreign investors have limited access to China’s exchange market, which is tightly controlled. But this could all change pretty soon.  Namely, after MSCI's decision, the CSI 300 listed index in the Shanghai and Shenzhen stock market hit highest levels in the last year and a half., state investment experts from  WC Capital Management, LLC . On June 20, this year, MSCI - the giant New York-based stock index provider included 222 Chinese stocks, called "A shares," in its popular markets stock index. Financial companies have an estimated $1.6 trillion riding on this emerging market. These 222 companies represent less than 1 percent of the key Chinese listings. By adding China’s A-shares, stocks denominated in yuan and listed in either Shanghai or Shenzhen, to its widely followed Emerging Markets Index can boost the deman

How Hedge Funds Remove the Psychology of Investing

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If you don’t want to research investments and managing a portfolio yourself, go for an index fund. Index funds will save you time and effort. In order to find out more information about index funds, we went to the investment management company, Willow Creek Capital Management . According to a portfolio manager from Willow Creek, investing in index funds has another key advantage. Investing in hedge funds can help you get better returns by removing the psychological biases that individual investors must overcome to manage a portfolio effectively. By comparison to the average equity investor, who achieved an average annual return of just 3.66%, from 1985 to 2018, the S&P 500 returned 10.35% per year on average. That explains the huge gap between individual investors and the S&P 500 index. Experts from Willow Creek Capital Management,  in affiliation with the University of Berkely , point out that individual investors suffer from psychological biases such as: ·  

Active and Passive Strategies for Investing

There are two main methods for investing in stocks and they are called active and passive management. The difference between them has nothing to do with how much you are active or passive. Active investors get to choose their own stocks, bonds and other investments; whereas passive investors leave their holdings follow an index created by some third party.  As a successful businessman with over 25 years in the investment management industry, the CEO of Willow Creek Capital Management has gained an in-depth perspective and knowledge of how investing works. When people talk about stock investing, they usually mean active investing. Most people may think that this in fact is the superior strategy, but that isn’t necessarily the case always. On the long run, most actively managed stock funds have underperformed S&P 500 index, the most popular and prominent benchmark for index funds. "That’s way many people prefer to go with an alternative to active management. Some people j

MBO (Management By Objectives) - Managing Organizational Goals

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MBO  (Management By Objectives) or management of organization goals is a strategic tool used by Willow Creek Capital Management in controlling company's work and investments. The purpose of this tool is to establish a balance between the goals of the firm and the goals of the employees. With the aim of achieving greater efficiency and achieving employee motivation results, this is quite a crucial factor. By using the MBO tool, Willow Creek has created an efficient management system where employee goals are aligned with the goals of the company.