Novus. Cerulli. FIN alternatives. Magnum Group. "It's fine to look at mutual funds at the end of what is essentially a 10-year bull market," says Friedland, "but you don't really have any protection in a mutual fund. So the hedge fund is your insurance. " "Betting all your investments on a perennial bull market is like driving with no brakes - it's great as long as you're going uphill, but what happens when the road starts heading downhill? " asks Friedland. The world's top hedge fund entrepreneur speaks from experience. He lost approximately half his net worth - his holdings at the time were worth "substantially more than US$15 million"-in the stock market bloodbath of 1987.
Primarily invested in stocks and mutual funds, many of them heavily leveraged, he watched the vast majority of his assets plummet in value as he desperately strove to liquidate his holdings. However, the canny Friedland noticed that his small holdings of Quantum hedge fund shares that he bought in 1985 dropped considerably less. The Supreme Opportunist. Eurekahedge. Hedge Fund Research, Inc.