Posts Tagged ‘Hedge Fund’

Contrarian Capital Management Versus Other Hedge Funds

While most people are aware that stocks tend to have very high rates of return on investment (especially when compared to today’s sluggish interest rates), it is still tough to decide where you might want to invest your money. While a medium-sized capital investment company like Contrarian Capital Management, LLC, might be tempting, perhaps hedge funds are an easy choice, since they are what small-time investors often call “big money.”

That would be an incorrect assumption. In fact, in 2012, hedge funds posted a minuscule 3 percent gain relative to the 18 percent jump in the S&P 500. While some might be willing to accept this as a yearly fluctuation, that would also be incorrect. Since 2003, hedge funds have underperformed the equity-bond index every single year. That’s right–the hedge funds charge fees for their investment expertise, yet they fail to deliver returns that can outpace even the most basic of free advice. While the top 10 percent of managers managed to return 30 percent in 2012, the bottom third actually lost their investors’ money.

As an investor, you want to make sure that you choose an investment company that will net you gains, not losses. Contrarian Capital Management, LLC, uses conservative contrarian investment strategies to locate valuable financial instruments among distressed securities. With over 27 years of experience, Contrarian has successfully capitalized on areas outside of the main stock indices with high barriers to entry.