Famous hedge fund investors make huge profits.
Online PR News – 20-March-2010 – – Hedge funds are private investment funds that are less regulated than mutual funds. These funds can profit in rising and falling markets. The fund managers are paid based on performance and some of them have been enormously successful. Lots of famous people such as Warren Buffett, David Geffen, Sylvester Stallone, and Arnold Schwarzenegger, star of the “Terminator” movies have made money in hedge funds.
According to The New York Sun, Mr. Buffett in 2002 invested $430 million of Berkshire Hathaway’s money in a Bermuda based hedge fund. This investment has recorded Berkshire Hathaway over $173 million in profits. Debbie Bosanek, Buffett’s assistant said they don’t comment on their investments.
Other famous hedge fund investors have also made huge sums. Sylvester Stallone, star of the “Rocky” and “Rambo” franchises invested $2.5 million and cashed out when his funds reached $3.8 million in just four years. The biggest winner as reported by Forbes.com, has been David Geffen. Mr. Geffen has a net worth of $5.0 billion, making him the richest person in the entertainment industry, richer than Oprah, Spielberg, Tom Cruise and David Beckham all combined.
In 1991, Geffen invested $200 million in a hedge fund run by Eddie Lampert, according to Fortune magazine he made more than $1.0 billion on that investment alone. But get this; had Geffen not made withdrawals to invest in other businesses, he would have more than $9.0 billion today. Just by investing with the right hedge fund, Geffen could have more money than he made on all other business ventures and investments combined.
There is one major obstacle with hedge funds. They cater to the very, very rich and usually have minimum investments ranging from $1.0 million to $10.0 million, like Eddie Lampert’s fund. Furthermore, these funds lock your money up for at least 5-years. Lead singer of U2 Bono, his fund Elevation Partners has a 10-year lock-up.
If only there were some way for investors with smaller amounts of money to invest with a top performing hedge fund manager, and not have a 5-year or 10-year lock-up with a $1.0 million minimum.
There is a way, Peter Tasca of Laureate Trust, which was up 42 percent during the financial crisis of 2008 and returned 33 percent in 2009, has launched a retail version of its Series I $1.0 million minimum investment fund. The retail fund will allow investors with a minimum of 2,500 USD, EUR, or GBP to invest side by side the Series I fund. Tasca says this is a great opportunity for the retail investor to benefit from professional portfolio management that is performance based and can profit in any market environment.