Bottom line for most people building wealth:
Start with low-cost Index Funds or Index ETFs (VOO, VTI, VXUS, etc.).
Skip high-fee active mutual funds unless the manager has a proven long-term edge.
Leave hedge funds to the ultra-rich and institutions.
Simple > Complex.
Low fees + time in the market = the real wealth formula.
4. Hedge Funds
Private investment funds for wealthy/accredited investors and institutions.
Managers use aggressive strategies (short selling, leverage, derivatives, alternatives) aiming for high absolute returns.
High fees (โ2 and 20โ โ 2% management + 20% of profits)
Limited access (high minimums, accredited investors only)
Less regulated, more flexible strategies
Can go up in down marketsโฆ or blow up spectacularly
Not for average retail investors.
Strong Q4 results and clear AI data centre demand, yet the stock is still getting hit hard on the Q1 guide. Looks like another case of great numbers, not quite great enough after the massive run-up this year. Curious to see how the new long-term customer contracts play out.
JPMorgan seems constructive on the visibility side.