Hedge Fund Reader : Some valuable advice from the guru of hedge funds

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August 07, 2005

Some valuable advice from the guru of hedge funds

Now here is some advice from a guru of hedge funds. Michael O'Higgins, author of 1991 best-seller "Beating the Dow" and ace investor gave insights into how the market is likely to perform in the coming months. His track record has been above average even in times of overall market slowdown. His talent of sniffing out future trends is what makes his opinions worthwhile. When he said ‘gold will shine’ it did like several other of his other forecasts. He now feels that Treasuries are fairly valued and long-term rates will not change much. Invest in stocks and bonds of five lowest-priced and highest dividend-yielding stocks available - GM, Verizon, Merck, Pfizer and SBC Communications. U.S. stocks should become attractive in November. Another secret to his success seems to be his selection of customers where he insists on at least $1 million from each client. Overall his fund manages $100 million for these high net worth clients. He also charges an exorbitant fees for his services - a base fee of 1.5 percent plus 20 percent of the profits. Myrtlebeachonline.com reports:

“At lunch in 2004, the depression was still on its way, he said. Deflation, too. After a stock market bubble such as the one that burst in 2000, there never had been a complete reversal until a huge period of falling prices, falling employment and declining economic growth.”

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August 7, 2005 in Research | Permalink