Other techniques include selling short, which is where one invests in seemingly undervalued securities, trading commodity and FX contracts, and taking advantage of separation between current market price and highest purchase price in events such as mergers.

Why are Hedge Funds Beneficial?

Hedge Funds are also beneficial because of their high level of security. Hedge Funds are private, between individuals, and do not have to be made known to government or other companies. Currently, Hedge Funds do not need to be registered with SEC. Hedge Funds are also based in places with less regulations (I.E. The Cayman Islands, The Virgin Islands, etc). However, one drawback of Hedge Fund security is fact that it looks suspicious to have secretive investments. For this reason, many companies and investors are criticized for being involved with Hedge Funds.

Conclusion

Hedge Funds are a very risky investment, with a large payoff. In order to invest in Hedge Funds, one must be prepared to make a very large investment. Hedge Funds are similar to Mutual Funds, except there are less regulations on Hedge Funds. Less regulations lead many people to be suspicious of investors who invest in Hedge Funds. However, if one is willing to take risk, Hedge Funds can certainly pay off!

Let clients raise your rates for you If you provide superior service and maintain rich relationships with your clients, and help them succeed, a magical thing will happen. Your clients will raise your fees for you. You won’t have to do a thing. It takes time, but consistency and reliability are rare and valuable. If you continue to rise to occasion when your clients need you, they will “tip” you way diners tip servers after they have become sufficiently sloshed to feel very generous. “Here! Take another three thousand dollars, just for being so nice!” Well, not exactly that way. Here’s what I mean. They will find ways to extend your contract. They will start asking why you charge less than others, or why others charge so much. They will refer you to other clients. They will give you different types of projects where you can be more creative about your fees. This has happened to me a half-dozen times at least. People who enjoy working with you, and who cherish your service and your commitment, will do you important favours. I was discussing this phenomenon recently with a friend who provides production services for TV and film across North America, often for large movie-makers and other production companies. Richard has been charging such low prices compared to competition that a client warned him, “If you don’t raise your rates, my VP won’t even look at you.” When invoices come in and VP sees one company charging $185 per hour and Richard’s company charging $45 per hour, VP will get nervous about gap and see Richard’s company as far below standard. The client continued, “Richard, you’ve got to make it look like you’re in same game.” When a client tells you something like this, I have one word for you. : OBEY.