Archive for June, 2006

Hedge Funds

Written by richard on 30 June 2006

I am a lover of Hedge Funds (HF), indeed I think that profit is something that all businesses need to make in order to survive. Hedge Fund Managers are some of the highest paid people on the planet. I guess this is where the love ends!

You see the HF story started as a private one for the very wealthy and everyone wanted a slice, managers were able to charge high fees for a bespoke product that could make money in all markets. However returns have been falling, as the Investments Market performance across the world has been lower than expected and volatility has returned. This has proved great for those fund managers that use Fundamental Analysis and Invested based on traditional methods.

I believe that the HF investments are over leveraged (they have borrowed too much) have not used this leverage to buy a correct position in the market place and will not produce the stable returns they claim to make. Most HF managers are secretive, and rightly so because if the public realised their positions were based on nothing they would disappear from the market place. My Dad would have called HF’s “Smoke and Mirrors, Son. Keep away” .

I hope I am wrong!

Richard Smith
Independent Financial Adviser
0845 226 9106
www.thefinancezone.co.uk

http://www.forbes.com/business/feeds/ap/2006/06/29/ap2849664.html

http://www.bloomberg.com/apps/news?pid=20601087&sid=aG6H9_oxBRuE&refer=home
http://news.goldseek.com/RichardDaughty/1151507101.php

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Its been a while since I provided an update…

Written by richard on 26 June 2006

however for those that know me will understand that I only write out to clients when there is something to say. So here goes.

Wills and Trusts – Inheritance Tax is the scourge of the Middle Classes or anyone that owns a house it would seem. There are things you can do to mitigate it, and despite the efforts of Mr G Brown (who seems to be climbing down more and more) there are some things you can do. Yes there have been some changes (existing clients no need to worry as your plans are ok) but for those who have not had plans drawn up by us (me) then you need to review them ASAP.

Investment Markets have been unsettled, it would some some sense needed to return to the markets and indeed it has. Will it last, traditionally the Summer Months are the time to forget Investments and enjoy a well earned break, and this would make some sense. For my clients with balanced portfolios it is business as usual.

Pension Changes have caused some important issues to be raised and you should look to have yours reviewed in due course.

At anytime you can contact me on 0845 226 9106 or email me using the usual address.

Until next time.

Richard Smith
Independent Financial Adviser
www.thefinancezone.co.uk

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