Why Do Hedge Fund Managers Make So Much?

Earn Cash Back On Stocks: Up To $5,000 Per Year https://www.silomarkets.com/logic Hedge fund managers are usually some of the highest-paid people in the world often earning hundreds of millions per year if not billions per year. When you take a look at their returns, however, it’s often not even higher than the S&P 500, so why are they paid so much? Well, the answer is that hedge funds aren’t exactly paid to beat the market. While beating the market is still a top priority for many managers, their true top goals are to minimize risk and maximize alpha. Alpha is a way to measure risk-adjusted returns and it lets you know if a given investment was worth the risk. An investment does not need to beat the market to have a positive alpha value. If the said investment has a low enough beta value, it could still produce a positive alpha. This video explains the inner workings of hedge funds, and why exactly hedge fund managers are paid so much money. Earn Interest From The Government & Top Corporations: (iOS App for US Residents) https://www.silomarkets.com/waiting-l... Free Weekly Newsletter With Insiders: https://logicallyanswered.co/ Socials:   / hariharan.jayakumar   Discord Community:   / discord   Timestamps: 0:00 - Hedge Fund Managers 1:35 - Client Base 4:42 - Beta 7:21 - Alpha 9:25 - Compensation Thumbnail Credits: Aaron Kotowski Forbes https://bit.ly/3vdd8HW Resources: https://pastebin.com/FecjygKC Disclaimer: This video is not a solicitation or personal financial advice. All investing involves risk. Please do your own research. https://www.silomarkets.com/disclosures