What is a Hedge Fund?

Рет қаралды 129,664

Күн бұрын

Join me and invest commission-free with Freetrade. Get started with a free share worth £3-£200.
magic.freetrade.io/join/afzal...
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
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!
Business inquiries: info@afzalhussein.com
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)
Instagram: / afzal_hussein
LinkedIn: / afzalhussein
About me: www.afzalhussein.com
My career consulting company: www.officialcvdoctor.com/
Recommended Reading:
Financial markets and the roles within easily explained: amzn.to/2WsRNKH
When Genius Failed: amzn.to/2Wt0nJI
The Intelligent Investor: amzn.to/2XBDbFG
The Big Short: amzn.to/2K0sEAB
Barbarians at the Gate: amzn.to/2KyVnfo
The Wolf of Wall Street: amzn.to/2K1RXSC
Money and Power: How Goldman Sachs Came to Rule the World: amzn.to/2WyKykN
Video suggestions are most welcome - feel free to leave them in the comments below!
------------------------------------------------------------
My equipment:
Camera: amzn.to/2Wp9J9f
Lens: amzn.to/2WQF6ZJ
iMac: amzn.to/2WRFd7e
------------------------------------------------------------
Careers can be tricky. I want to change that.
I like sharing practical, helpful and easy to understand advice on how to get the career of your dreams whether you're a student, graduate or experienced professional.
SUBSCRIBE for new videos every Wednesday!
------------------------------------------------------------
Intro music: goo.gl/qN1M5t
What is a hedge fund?
#HedgeFunds #Students #Careers

Пікірлер: 155

@AfzalHussein 3 жыл бұрын

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 2 жыл бұрын

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 3 жыл бұрын

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 3 жыл бұрын

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

@hOurworld11 3 жыл бұрын

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

@ozohirogi2577 4 жыл бұрын

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 4 жыл бұрын

Haha thanks! 🙌🏽👊🏽

@JL-xd4cn 4 жыл бұрын

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

@mauricenickelson9472 3 жыл бұрын

Smart, intelligent and articulate person.

@BagelzAlt 3 жыл бұрын

Right this was perfect for me to understand

@ankitasaxena5891 3 жыл бұрын

@@BagelzAlt haha

@Levrai10 4 жыл бұрын

Careers in hedge funds next please.

@belvinnadar5782 4 жыл бұрын

Globe Op

@ronakmakhija9817 4 жыл бұрын

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

@chetanjunankar3102 4 жыл бұрын

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

@AfzalHussein 4 жыл бұрын

Thanks! 😊

@RandageJr 4 жыл бұрын

Explained in an excellent way as always. Thanks Afzal

@Rome.W 4 жыл бұрын

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

@hirahasan1996 4 жыл бұрын

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.

@megasweetevelyn 3 жыл бұрын

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 3 жыл бұрын

Pretty well explained man, congrats!

@menonguy 4 жыл бұрын

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

@kalungimohammed5850 3 жыл бұрын

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

@mohammedmushtaq1969 4 жыл бұрын

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!

@perryd43 3 жыл бұрын

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

@MrDungFTU 4 жыл бұрын

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

@armitamerrikhi6349 4 жыл бұрын

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

@tuotuo9659 3 жыл бұрын

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!!!

@Disaster3827 4 жыл бұрын

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?

@mbulanzuki4126 3 жыл бұрын

So well explained! Thank you 🙏🏾

@Roma_approves 3 жыл бұрын

Really appreciate your explanation.

@nabeelnabster5346 2 жыл бұрын

Superb explanation!! Thanks AH

@shobharvind 4 жыл бұрын

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

@Barca25644 4 жыл бұрын

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

@poeticprincee9750 3 жыл бұрын

This made everything so clear!!!!

@Thomasalbertini 3 жыл бұрын

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.

@dumisanisibanda3080 4 жыл бұрын

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?

@marilyn9858 4 жыл бұрын

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 ??

@chintasmedia8009 4 жыл бұрын

I am always waiting for your videos

@murphdog9506 3 жыл бұрын

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 3 жыл бұрын

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 :-)

@AfzalHussein 4 жыл бұрын

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

@akshaysharma4836 4 жыл бұрын

Please make a video on FRM, and CFA Vs FRM

@user-jk6xq7rv2k 3 жыл бұрын

Thank you for the video. Very informative.

@tamanasafei918 3 жыл бұрын

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 👍

@AfzalHussein 3 жыл бұрын

Thanks!

@shravanivak8898 4 жыл бұрын

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

@younesalla818 3 жыл бұрын

Nicely explained

@alexandermonzon8165 4 жыл бұрын

Where do I start.learning about this and financing

@samathajaddu5992 4 жыл бұрын

Truly good explanation. Thx-Fathima

@mainhoondon21 4 жыл бұрын

Fantastic explanation!

@00kadijah 3 жыл бұрын

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!

@kennethho888 4 жыл бұрын

Facts. Thanks for the great vid sir.

@amberjohnson1234 3 жыл бұрын

Video on asset classes! Especially fixed income

@sabeen-yo8kt 4 жыл бұрын

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?

@tylerjosephtt 3 жыл бұрын

I learned so much!

@tyboykins7315 Жыл бұрын

Great Information!

@teddyw.charawa8989 3 жыл бұрын

Can you share on Market microstructure effects on transaction prices?

@clucie 3 жыл бұрын

thank you! very useful

@Raj-wo9ij 2 жыл бұрын

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

@callmekelly9514 4 жыл бұрын

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

@balakrishnakale6667 3 жыл бұрын

Great information to have in mind

@castronirukshan1071 2 жыл бұрын

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

@BagelzAlt 3 жыл бұрын

Thank you for the perfect explanation 🙏

@AfzalHussein 3 жыл бұрын

Thanks for watching! 👍🏽

@BagelzAlt 3 жыл бұрын

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

@Jeric-gq7pr 4 жыл бұрын

Fantastic video. Thankyou.

@AfzalHussein 4 жыл бұрын

Thank you 😊

@ntnme1730 4 жыл бұрын

Thanks

@judyl.7811 Жыл бұрын

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.

@wallstreet710 4 жыл бұрын

We tip our hats sir....

@karanpatel5649 4 жыл бұрын

THANKS DUDE!

@parasharamshejal3000 2 жыл бұрын

Nice explanation well

@mohozul 3 жыл бұрын

Any good long term investments to invest in?

@trussme2146 4 жыл бұрын

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

@fajrisalimi8652 2 жыл бұрын

Nice presentation.

@aslzar 2 жыл бұрын

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

@raniras8850 3 жыл бұрын

Superb Sir 👍

@Kuziai 4 жыл бұрын

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

@kirilmihaylov1934 4 жыл бұрын

Yes ...

@Myke-ix2ui 3 жыл бұрын

Excellent

@J.T.A 3 жыл бұрын

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

@Zw_1738 4 жыл бұрын

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

@prithvidhyani52 4 жыл бұрын

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)

@sparkellz-pngways9659 4 жыл бұрын

Thank you

@tiktokguruexpert6688 4 жыл бұрын

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

@donjoseph5506 4 жыл бұрын

I think you could do some videos on consultancy

@usmanmir7597 2 жыл бұрын

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

@jainambarot4828 4 жыл бұрын

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

@emmanuelowolabi12 3 жыл бұрын

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

@tejinderkumar6184 2 жыл бұрын

Best brother

@Falcon23ize 4 жыл бұрын

Are those all your books ?

@9kelly9 3 жыл бұрын

best explanation on YT

@AfzalHussein 3 жыл бұрын

Cheers!

@kartikarya9644 3 жыл бұрын

Great explanation man! Earned yourself a sub!

@AfzalHussein 3 жыл бұрын

Thanks man 👊🏽

@jamsteracton 4 жыл бұрын

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 4 жыл бұрын

Jamie Acton the short answer to that would be no

@victorsingh878 4 жыл бұрын

Brilliant

@AfzalHussein 4 жыл бұрын

Thanks!

@investheavy 3 жыл бұрын

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

@hacker010010101 4 жыл бұрын

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

@ebunlois3151 3 жыл бұрын

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

@lenas6034 3 жыл бұрын

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

@JohnSmith-sb5ym 4 жыл бұрын

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 4 жыл бұрын

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

@kiefer8083 4 жыл бұрын

love this guys channel hes fuckin awesome

@shubhkatiyar2583 3 жыл бұрын

Where are from you...??

@lloydielloydie821 3 жыл бұрын

Big up...

@supercars276 4 жыл бұрын

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

@kayshiva6616 4 жыл бұрын

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

@martinhagenbruch286 4 жыл бұрын

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.

@emzrahman6885 3 жыл бұрын

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 3 жыл бұрын

This what my main concern is

@narc7072 4 жыл бұрын

I think Business cards would be an interesting video

@AfzalHussein 4 жыл бұрын

What about them?

@narc7072 4 жыл бұрын

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

@chokeonthis2932 3 жыл бұрын

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

@Alice12r 3 жыл бұрын

I'm intrested in you channel

@RealestatePape 4 жыл бұрын

That Maxwell intro 🤦🏼‍♂️

@donmcmahon3889 3 жыл бұрын

@JavierHernandez-ln5by 3 жыл бұрын

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

@oscarmiguel316 3 жыл бұрын

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 3 жыл бұрын

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 3 жыл бұрын

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

@Thesussysuscat 3 жыл бұрын

You know why I here

@AfzalHussein 3 жыл бұрын

#GME

@krishant 4 жыл бұрын

♥️👍🏻

@teddyw.charawa8989 3 жыл бұрын

Thou knowest what you ye are explaining.

@moxavenger 3 жыл бұрын

Okay, but how do hedge funds lose money because of what happened with Gamestop?

@AfzalHussein 3 жыл бұрын

Video coming soon 😉

@ayesh8110 3 жыл бұрын

Because they shorted GameStop at $50 and it’s now at 330 cause of shitron and wall street bets.

@moxavenger 3 жыл бұрын

@@ayesh8110 Thanks. I'm not clear on how you "short" something and make money. Do you have a video on that?

@ayesh8110 3 жыл бұрын

@@moxavenger no I retired from making videos but basically you can trade options (1 option is 100 shares) . If you think the stock will continue to go up you place a call and if you think it’ll go down you place a put (aka shorting a stock). If the stock goes up on a call you make money but if it goes down you lose money vice versa with a put. It may be a little confusing at first but if you watch KZfaq videos it gets easier to understand.

@moxavenger 3 жыл бұрын

@@ayesh8110 Thanks, much appreciated!