Posts Tagged ‘investors’

Why is it bad for a mutual fund to have too many assets?

I keep reading on morningstar and other finance sites about how "such and such a mutual fund is getting too bloated with assets," and that this is especially a problem for funds that focus on small-cap stocks. And I see that Vanguard and many other companies have closed funds to new investors–even Vanguard’s Windsor II, which focuses on huge corporations, has restricted new investors. Let’s say a mutual fund purchases more that 50% of a company, why is that bad? Isn’t that what Warren Buffet’s Berkshire Hathaway does?

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    4 comments - What do you think?  Posted by admin - April 21, 2010 at 5:30 pm

    Categories: Mutual Funds   Tags: , , , , , , , , , ,

    What's the difference between private equity funds and hedge fund?

    I read in Business Weekly that pension funds, university endowments, and other big investors invest in hedge funds and private equity funds. An accompanying graph shows that private equity funds had much higher returns than hedge funds in 2006 and 2007, but also greater losses in 2008. What is the difference between the two? Do they invest in different products? If not, on what base would a pension fund choose whether to invest in one or the other? Thank you!

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    2 comments - What do you think?  Posted by admin - April 14, 2010 at 2:42 pm

    Categories: Bond Funds   Tags: , , , , , , , , ,