A look inside hedge funds

Hedge funds used to occupy a dark, undisturbed corner of the financial world, but over the last year they've been thrown under the spotlight. Still, many people don't know exactly what hedge funds are, or what hedging actually means. Senior Editor Paddy Hirsch explains.

About the author

Paddy Hirsch is a Senior Editor at Marketplace and the creator and host of the Marketplace Whiteboard. Follow Paddy on Twitter @paddyhirsch and on facebook at www.facebook.com/paddyhirsch101
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Thank you so much for the videos. I have learned so much just by watching them. Entertaining and informative! Keep up the good work!

Very interesting and informative. Bravo!

Cap markets are unstable. In the past there was no way to make them stable. But today we have computer power that can be used to make them stable. By using the greater computer power of today we can have a much higher turn over of cap in the cap market. This higher turnover will make the market harder to fix or control and the market will no longer have the unstable run ups or declines. Who can change or control the market when say 20% of the capital is trading each day. So now that we have the compute power to provide for all these transactions that will smooth out the market how to we force people to turn over at a rate of 20% a day? Easy, put a cap gains tax of 0% (zero) on all gains of 7 days or less and put a cap gains tax of 90% of all gains of 7 days or more. The likes of Yahoo Micosoft and/or Sun Micro Systems will give us the systems that will provide automated software agents to support turning over one's investments every 7 days (based on the specs you give the agent). A system like this will make the financial markets work as smoothly as the local fruit market.

I love this show. I have learned so much about market just by watching your show. In fact, I am thinking changing my major to health management. What do you think about that? What is your opinion about students majoring in some type of business with the way the market is today? Do you think there is a future for business student? Keep up with your educational messages and thank you for your attention to my concerns.

Wow, these are fantastic videos. I found them completely by accident.

I like your video presentations. Is it possible for you to take a session on 130/30 Strategy used in Hedging?


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