Hedge Funds: Greedy or Misunderstood? | Jason Garlock - E48

Jesse and Gabe are joined by Jason Garlock, Chief Investment Officer at Cobblestone Capital Advisors, to demystify hedge funds. The conversation covers what hedge funds are, their legal structure, investment strategies, performance metrics, fee structures, and regulatory environment. Jason draws comparisons with mutual funds and traditional investments, emphasizing the importance of understanding the manager's role and strategy. The episode also touches on the relevance of hedge funds in modern portfolios and effective ways to benchmark their performance. Finally, the group ends on a lighter note with a fun discussion on their personal 'long' and 'short' bets.

Key Takeaways:

• What are the differences between hedge funds and mutual funds?

• How do hedge funds use short selling, arbitrage, and global macro as a financial strategy?

• What role do the managers and investors play in the legal structure of a hedge fund?

• What constitutes an appropriate benchmark for hedge fund performance?

• What are Jesse, Gabe and Jason long and short on when it comes to living the best life?

Key Timestamps:

(00:00) Introduction

(02:01) What is a Hedge Fund?

(02:26) Legal Structure and Advantages

(04:03) Investment Strategies and Transparency

(05:50) Hedge Funds vs Mutual Funds

(10:39) Leverage in Hedge Funds

(14:44) Benefits for Hedge Fund Managers vs Investors

(18:00) Understanding Hedge Fund Fees

(21:53) Consumer Protection

(28:51) Benchmarking Hedge Fund Performance

(33:30) Private Investments vs. Hedge Funds

(36:04) Personal Long and Short Bets

Key Topics Discussed:

The Trusted Partner, Cobblestone Capital Advisors, Jesse Cramer, Gabe Chodak, Rochester New York, financial planning, investment management, long short hedge funds, mutual funds, private equity, hedge fund managers, investors

More of The Trusted Partner:

Website: https://cobblestonecap.com/the-trusted-partner-podcast/

Information presented in this podcast is not intended to be nor should be construed as individualized investment advice. All content is of a general nature and solely for educational, informational and illustrative purposes. Investments in securities are not insured, protected or guaranteed and may result in loss of income and/or principal. Opinions of unaffiliated third-parties may not represent those of Cobblestone Capital Advisors or its employees.