A personal finance blog dedicated discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance.


Wednesday, May 18, 2005

Not Qualified to Invest in a Hedge Fund? Then Start Your Own!

David over at the SeekingAlpha blog has an interesting post about using exchange-traded funds in a way similar to how hedge funds invest, but do it in a way that is much less costly than a hedge fund. Of course, you have to know what you are doing before you start your own hedge fund. Therefore, this strategy isn't for the beginner. But, I thought it was an interesting idea.

Also, I think it is interesting that David thinks exchange-traded funds are going to lead to the demise of hedge funds. I don't see that happening any time soon.

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