When Picking a Hedge Fund, Bigger isn’t Always Better

When Picking a Hedge Fund, Bigger isn’t Always BetterFor many years the question of whether the size of a hedge fund affects its returns has been hotly debated. Although there is ample evidence that a few legendary funds are able to manage billions of dollars and consistently deliver outsized returns to investors over the long term (especially on a risk-adjusted basis), there is mounting evidence that, at least in the world of hedge funds, smaller can be better….

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5 Lessons that will Help Protect Your Portfolio

5 Lessons that will Help Protect Your PortfolioOne of the fascinating things about the market is that, no matter how long you invest, or how much you think you know, there can always be new lessons learned. For a lot of investors, losing money — unfortunately — is often the cost of tuition for these market lessons. But, no investor is going to bat 1.000, and if you can at least learn from your mistakes then your…

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The 5 Hot Sectors To Invest In

The 5 Hot Sectors To Invest InInvestors, it seems, are always looking for the “next great thing.” Since individual stocks are so hard to pick, though, some investors look for investment “themes” instead. They figure if they can latch onto an emerging or hot trend, then it matters less what stock they actually buy within that trend — since they all might do well. This can, in our view, be a dangerous exercise. Usually “hot” themes…

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Bitcoin and the Magic of Blockchain

Bitcoin and the Magic of BlockchainUnless you’ve been living under a rock for the last few years you likely are familiar with the term: Bitcoin.  However, for those unfamiliar, Bitcoin is a digital currency which acts very much like paper money which can be used to purchase goods or even exchanged for real paper currency like Canadian or U.S. dollars.  It’s also a payment method so anyone can send and receive money anywhere in the…

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How to Reduce the Risks of Investing in Stocks

How to Reduce the Risks of Investing in StocksInvesting in stocks historically gives higher returns than placing money in bonds, GICs, or savings accounts. With higher return comes higher risk. Here I will talk about two risks that come with investing in stocks and how to reduce those risks. 1. Risk of capital loss You can buy and sell stocks on major exchanges easily through your bank or through a trading platform. However, the flip side of this…

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Investors Connect the Dots of Financial Forecasts at their Perils

Investors Connect the Dots of Financial Forecasts at their PerilsThe growing globalization of financial markets over the past 30 years means information from the four corners of the world is amassed in real time for the consumption of traders, pundits, and ordinary investors. But instead of increasing the batting average of financial forecasters, all this extra info only adds to the noise surrounding their less-than-perfect predictions. Human nature compels us to attempt to connect the dots — however seemingly…

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GICs – The Problem With Playing It Safe

GICs - The Problem With Playing It SafeThe Problem As a 59-year-old training administrator for a mining company, Heather is a member of her company’s defined contribution pension plan. She’s also mortgage-free. But in 2008 she suffered a 40% loss in her stock portfolio and has since slowly sold off all her high-fee mutual funds, putting her 100% in cash. “I have to pay more attention,” says Heather, who has started managing her own finances. After reading…

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Here is Why The S&P 500 Might Not Hit 2000 Next Week

Here is Why The S&P 500 Might Not Hit 2000 Next WeekNext week is the last unofficial week of summer, but that doesn’t mean you should let August doldrums get between you and your portfolio. Yahoo Finance’s very own Lauren Lyster, Milanee Kapadia, Michael Santoli and editor-and-chief Aaron Task are here to bring you information on what you should be expecting next week, August 25th through 29th. Watch the pump …

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When High Investing Fees are a Good Thing

When High Investing Fees are a Good ThingWe’ve all heard the complaints that investment management fees are too high, but what’s missing from the debate is whether those fees represent good value for the money. The value of something requires, by definition, that it have usefulness or merit to an individual, either because she sees it as desirable in itself or because others do. In other words, value is entirely subjective. Investment products are not good value…

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5 Tips For Doubling Down On Your Winning Investments

5 Tips For Doubling Down On Your Winning InvestmentsDespite the proven risk-reduction benefits of portfolio diversification, it cannot be argued that one of the ways to get truly rich from equities is to have an exceptionally concentrated portfolio. If a stock is going to go up 10- or 20-fold, then owning a giant position in one great stock is a sure way to riches. Some aggressive investors will double down on winning positions as a way to further…

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