Mr. Lack doesn't say that short selling is the major source of hedge-fund risk.
Looking at the fund's risk-adjusted performance over several years offers insight on how the fund weathered different market environments, says Denny Baish, a mutual-fund analyst with Fort Pitt Capital Group, a wealth-management firm based in Pittsburgh.
Although investing across several countries can reduce a fund's risk, some analysts are wary of emerging markets.
"They deserve transparency into the fund's risk profile and positions, " says Smith, and he regularly meets with them to explain his strategies.
This unprecedented turn of events marks the first time that individual investors in a money market fund are at risk for losing some of their principal.
At worst, an attempt to use the systemic risk fund could turn into another fiasco like last summer's, when the government tried unsuccessfully to use public funds to save the Sogo department stores.
And since there is no capital at risk for the GP if a fund loses money, the risk of default on the debt is borne solely by the LPs.
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"People who are investing in the fund understand that it is a high-risk, very volatile fund, " he said on the conference call.
Three things matter in the selection of a mutual fund: Cost, risk and performance.
The fund still avoids currency risk by buying sovereign debt and corporate debt priced in dollars.
No individual investor would ever have the financial incentive or wherewithal to bring a complicated case showing that Schwab had loaded its Yield Plus Fund with high-risk bonds.
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The treasurer did not mention is that his new asset allocation subjected the fund to far more risk, and the money managers Moore picked to do so on average have underperformed peers in the same markets--as has the overall fund.
Most mutual fund shareholders, for instance, are still avoiding any high-risk investments in their mutual fund portfolios.
Sheldon Jacobs , editor of The No-Load Fund Investor, has a ten-year risk-adjusted return that puts him among the top five fund letters, according to Hulbert.
Rubenstein then suggested Carlyle's new closed-end investment fund as a low-risk option and a "good investment, " Huffington contends.
The challenge for investors is to find a fund that offers the desired risk exposures at the best cost.
Few fund managers are going to risk the wrath of the SEC by outright lying in their filings.
In contrast, a lifestyle or balanced fund is based on your risk tolerance.
Moreover, in ruling to that effect, the contributing governments would be putting their own money, not the Fund's, at risk.
The answer is, overwhelmingly, insurance companies peddling high-cost, tax-deferred variable annuities with crappy proprietary mutual fund options and high-risk fixed accounts.
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The lower average rating and longer maturity range of the Vanguard index give the fund a higher yield, risk and volatility.
The state of Arkansas is using federal money to fund jobs for at-risk students in Springdale, according to KHBS-TV in Fort Smith, Arkansas.
The consultant keeps the kick-backs paid by the manager for allowing the manager to handle pension assets but the fund is taking all the risk.
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They should never be the sole criterion for picking a fund, but they should figure in along with risk, expenses, past performance and the suitability of the fund category to your needs.
As the fund does not employ leverage or derivatives for risk management, Exante intends to provide a two-way secondary market for the trading of fund shares.
That is why governments and commercial banks should be encouraged to risk lending alongside the Fund.
And a common deposit-insurance fund could also credibly reduce the risk of bank runs in vulnerable countries.
The other risk is that the fund invests in a selection of stocks that deviates from its asset allocation.
Dr. PENNINGTON-CROSS: Then we're introducing a series of borrowers that will increase the overall risk of this insurance fund.
California officials may allow investors to choose at the outset how much risk they want the fund managers to take.
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