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Unfortunately, there are relatively
few hedge fund experts based in Japan.
Many of the best hedge funds are based outside of Japan, and do
not offer capital investment information in Japanese, even online.
We saw this as an opportunity.
The Hedge Fund Japan team is hoping
to help the Japanese institutional investor learn more about the
best hedge fund solution for any possible investment need.
By visiting our Hedge Fund Japan Capital Mall, registered users
will be able to compare and research the best possible choice
for Japanese institutional needs.
In Japan, there is a lack of detailed
public information on the industry, especially in Japanese.
There is no international central organization that gives licenses
to hedge funds globally. The area is not generally regulated and
therefore has no official figures for all possible members.
Japanese investors have not been
hedge fund innovators over the last two decades. Computing power,
especially the combination of specialist programmers with highly
technical trading skills has not been developing at the same rate
in Japan.
The global hedge fund industry
has largely grown out of a specialist culture coming from a focused
area of finance, unlike Japan, where the traditional rotation
of Japanese institutions has developed a widely experienced but
more generalist skill set.
To date, a large number of prominent
hedge fund founders have come from proprietary desks, other funds
or money management firms.
With an estimated 10,000+ hedge funds
existing globally in December 2008.But about half hedge fund are expected to close by 2010. Any hedge funds that survive Q2 2009 maybe able to make 15 years of profits within just 3 years. This is the biggest hedge fund opportunity of a generatiion.It is not easy to have only one definition.
Hedge Fund Japan aims to address the follwing misconceptions:
| 1. |
Hedge Funds
are not as a rule hedged against any and all risk.
The Japanese investor is often at first confused by the general term "hedge fund".
The bulk of major hedge funds have significant hedges in place.
However, the better known minority in Japan, have very limited hedging in many cases.
None are 100% risk free against volatility, and none expect to protect 100% of investor's capital. Many new Japanese institutions looking at opportunities are still confused by the "hedge fund" term.
We have found that a more thorough explanation is often needed |
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| 2. |
Hedge Funds
are not a restricted investment area with heavy regulation
or disclosure.
This is especially true when compared to mutual funds, which have very clear investment guide lines.
The main appeal of hedge funds is their flexibility to constantly seek out, and act upon new profitable opportunities.
The speed needed is very important in global markets that can change very quickly. |
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| 3. |
Hedge Funds
are not profitable only in rising markets.
Part of the success of hedge funds has been their strong results in both rising and falling markets across borders.
They are nimble in many cases and highly opportunistic.
Recent innovation has allowed statistical arbitrage firms to make money on increasingly smaller price movements.
These minute price differences would have previously been unprofitable without the latest high technology.
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| 4. |
Hedge Fund
position sizes are not directly linked to asset size
due to leveraging in some cases.
Derivatives and highly technical pricing models allow very large positions to be built and profits to be made.
This is often called "gearing" and is the main power of the hedge fund model. This is unlike mutual or similar pooled funds, which do not often allow any gearing at all. |
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