Hedge Funds Pinch Government Aid ๐Ÿ’ฐ

Table of Contents

Hedge Funds Pinch Government Aid

The whole point of a hedge fund is to hedge funds. If the market goes down, the hedge fund goes up. The most famous hedge fund manager out there is Ray Dalio, a rockstar of the investing world. He manages more than $160 billion at Bridgewater Associates and is in charge of keeping that number there, thereabouts, or moving higher. It mustnt fall!

Ray Dalio gets paid โ€œtwo and twenty,โ€ which means he (or Bridgewater) earns two percent of all the money invested in his fund each year. If he outperforms the market, he makes 20% of that outperformance. Dalio is a billionaire because, first, he’s a very good investor, and second, he keeps his headcount low. The fewer mouths to feed on his payroll, the more dollar for him!

But that’s a big loophole. Some smaller funds are qualifying for the Paycheck Protection Program because they have sub-500 employees, helping themselves to government support. Theyโ€™re ironically using poor hedging performance to support applications!

โ€œJust because a business is in hedge fund management, doesnโ€™t necessarily mean itโ€™s loaded with rich people,โ€ says Anthony Scaramucci of SkyBridge, busy handing out aid to executives like a croupier at a poker table. There are small managers just getting started in the game. They only have funds from friends and family and are investing scared.

Weโ€™ll see where this goes for Scaramucci. He’s public enemy number one. If you aren’t rich as a rich hedge fund manager, you’re doing it wrong. The masses call this preposterous and shameful, as government aid is for dry cleaners and barber shops, not failed institutionalized moneymen, but perhaps that’s harsh?

The Managed Funds Association (MFA) has come out against funds pocketing the aid, saying this is a first-come, first-served system, and โ€œaidโ€ for wealth management company is aid that another needy business canโ€™t get.

If your $1 million fund (and pride) was down 20% with angry investors knocking your door down, be honest, would you take the loan?

Share:
More Posts
The Crude Oil Bust ๐Ÿ›ข

Surging global crude oil prices, driven by factors like OPEC+ production cuts have pushed U.S. West Texas Intermediate futures to over $95 per barrel.

Metaverse Returns ๐Ÿค–

Meta, led by CEO Mark Zuckerberg, is intensifying its commitment to innovation in the Metaverse through the introduction of the Quest 3 VR headset.

Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visaยฎ Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.