Category: Exchange Traded Funds

The Top Hedge Fund Manager of 2017

When it comes to the stock market and big-time investments, hedge funds can be some of the most profitable investments on the market. A hedge fund is essentially big pool of money that other invested put their money into. These pools of cash are then used to invest into long-term stocks in order to produce large amount of money, which are then given to the investors as profit.

These hedge funds are very hard to get into and are not regulated very heavy. As a result, you need a lot of upfront investment and you cannot touch the first installments until period of time has passed. In most cases, you also need to have a positive reputation if you want in on a hedge fund.

These fund use aggressive trading tactics and are usually managed and overseen by a hedge fund manage. These people are very important and their main job to make sure the fund is profiting, as they also get paid if their trades are successful. There a loads of hedge fund managers and some are incredibly wealthy. In this article, we will look at the top hedge fund manager in 2017 to see just how much he makes a year.

The Top Hedge Fund Manager(s)

Out of all the hedge fund managers in the financial industry, both James Simons and Michael Platt are the top earners in the year so far. They are both famous billionaires who are in charge of some of the largest hedge funds in the market. Both of these hedge fund managers earning around the same amount, which was $1.5 billion.

James SimonsHedge Fund Manager Jame Simons

Although the two earn around the same amount, they are actually very different in their approach to managing and trading. Simons, in particular, is now using computers and technology to make the trading and investing decision for him. This is a very quantitative approach to the strategy and has left a number of human-based systems in the dust. He owns the firm “Renaissance Technologies”, which manages $36 billion in clients’ money.

Michael Platt

Michael PlattMichael Platt earned an identical amount to Simons but still uses the traditional trading methods back at his company in London – BlueCrest. Platt uses a lot of human-based teams opposed to the Simons robot army and has them broken up into teams in order to make clever, highly profitable trades. What is interesting about Platt recently gave back $7 billion to the investor and has been trading his own money. The firm used to hold $36 billion in funds.

About Hedge Fund Managers

Being a hedge fund manager is a very stressful job but if you are good at it and make good calls, you can be very profitable. The two individuals on this list are both billionaires because of the trades they make and have built some impressive companies. Not a lot is known about what will happen by the end of 2017 and who will be on top. In general, the hedge fund market seems to be in a bit of a dip and many firms are struggling. Hopefully, things start to pick up in later years.

Differences Between Day Trading and Investing

There are a million ads broadcasting wealth through day trading. Truly, day traders and long-term investors both profit and both lose money. Some fruitful long-term investors lose their money when attempting to day-trade and some time or another trader can’t pick a decent long-term investment. Regarding trading, the distinction is for the most part in personal temperament and time. Below are the differences between Day Trading and Investing:

Timeframes

The fundamental differences between day trading and investing are the action levels and position holding times. Day trading includes dynamic management with a short-term holding period, though investing includes latent management with a longer-term holding time horizon as a rule spanning from different quarters to years. Day traders concentrate on short-term trades contained in a single trading day using direct-get to trading platforms. Investors tend to screen portfolio positions periodically from week after week to quarterly through statements and online browser based platforms.Day-Trading

Technical Analysis versus Fundamental Analysis

Day trading relies more on technical analysis using charts and technical indicators. Investing centers more around fundamental analysis including earnings reports, financial metrics, news, and ratios. Fundamentally, day traders are more interested in a stock’s value action, while investors are more centered around the underlying company. Day traders may likewise use for a higher concentration of offers to stash a littler relative value movement value pick up.

Commissions

Day trading includes more transactions in this way generating more commission expenses, though investing includes not very many trades. A day trader might get in and out of a position different times in a single day, while investors may hold positions for a considerable length of time or years. Along these lines, day traders are more sensitive to broker commissions. To an investor who plans to hold a position for a considerable length of time, a commission is irrelevant. Conflictingly, day traders are getting in and out of positions routinely so commissions can include quick.

Sorts of Stocks

Day traders have diverse criteria than investors when searching for stocks. As said above, day traders are more centered around technical analysis than fundamental analysis. Traders are not very worried about a company long-term potential, management team, and so forth. Rather they are centered solely around value action. Day traders search for stocks with momentum and volatility. This creates the chance to exploit critical value action. It additionally gives the liquidity important to get in and out of positions. Conversely, investors are centered around great companies: companies they accept will develop in the coming years. While volatility is useful to a day trader, it could speak to flimsiness to an investor. Investors tend to search for more secure stocks from more legitimate companies.Data-analyzing-in-stock-market

Risk Exposure

Drawback risk can frame from worldwide markets and occasions while stock markets are closed resulting in futures gapping down, which eventually makes most stocks likewise open with a hole down. Investing trusts these are quite recently little hiccups in the general picture of the long-term perspective. The absolute most unstable holdings periods include earnings reports. Long-term investors go for broke amid the earnings season. Open companies are required to give a quarterly earnings report enumerating the condition of business and the earlier quarters execution.

Last word

Most companies will likewise give execution projections pushing ahead, otherwise called earnings guidance. Stock’s can respond viciously to the corporate earnings report and guidance. A long time of profits can be lost in a single session for missing consensus analyst appraisals and guidance figures. Investors regularly will choose whether to keep holding a position based on these results where fundamental analysis has a key influence in the basic leadership process.