Hedgefonder: Hur kan dess risker och möjligheter förmedlas
Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
We have in this essay studied the Swedish Hedge Fund Market available for the average Swedish private investor. We have closely looked at the risk measurements that are applicable on the evaluation of Hedge Funds today, and furthermore studied how they are communicated and what they actually contribute with in terms of risk and yield. Our survey attempts to clarify the shortcomings in the communication between the Hedge Fund Managers and their smaller investors. Do they really know where they put their money? The market is rapidly expanding and our goal was to find improved ways to inform about the Hedge Funds risks and opportunities. The answers to our questions have we sought and found in the market, we have interviewed a few Hedge Fund Managers as well as the Swedish FSA. Our conclusion is that both the managers and de controlling organ are overall pleased with the way the market currently operates. They do however acknowledge a few shortcomings. They believe that the smaller investors are lacking in knowledge and awareness about the Hedge Funds, but they also consent that it is on the investors responsibility to use the information supplied. The Hedge Funds homepages do contain sufficient information for the average investor. The risk measurements are, as far as the managers are concerned, mainly for presenting to the FSA. The numbers are of no use to the Hedge Fund Manager, and neither to the investors that are believed to make their decisions based upon past performance and personal recommendations. The risk measurements are no guarantee for future yields as they are entirely based on past events, they should instead be used as tools to form a broader picture of how the fund is related to risk. An issue that we have identified in the Swedish Hedge Fund Market is that there is a lack of triggers for a functioning competitive market. The FSA thinks that the market to a large extent can regulate itself, but in a small market as Sweden we thing it is naive to think that the market will shape itself to the benefit of the consumers. Even in large and well established Hedge Fund markets as in USA there is a lack of price pressure. We have concluded that it would be favourable if the Swedish FSA distributed information about Hedge Funds to all investors concerned. The market consents that there is an obvious need of deeper knowledge about the products among investors. It ought to lie in the best interest of the managers to take the initiative to distribute thorough information to clients, as it would raise credibility and liability. The FSA could also take more extensive responsibility to educate the Swedish people and foresee that objective and general information is spread.
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IdentifiersURN: urn:nbn:se:su:diva-6524OAI: oai:DiVA.org:su-6524DiVA: diva2:196609