The world\u2019s twenty most successful hedge funds raised $63.5 billion in 2020, setting a decade\u2019s record in volatility as tech stocks rebounded sharply after the pandemic-fueled sell-off, LCH Investments reports.\u201cThe net gains generated by the top 20 managers for their investors of $63.5 billion were the highest in a decade. In that sense, 2020 was the year of the hedge fund,\u201d- Rick Sopher, LCH\u2019s chairman, said in a statement.It is commonly assumed that all technological innovation in the investment area is first tried by hedge funds. This is quite true: hedge funds manage the capital of investors in order to increase it with minimal risks \u2014 this ratio of profitability and risk attracts their clients.The main goal is to counterbalance the fall of some assets with the growth of others, and in order to achieve it, it is necessary to use a well-thought-out strategy and excellently predict future trends. Technological innovation can just become a tool that will make these processes more accurate and efficient.If hedge funds had to choose between lower but stable profitability and a possibly greater return on a roller coaster ride, then most of them will opt to the first option.For example, the \u201cstable non-risky 200% per year\u201d strategy will be more advantageous in relation to the strategy like \u201c500% per year with a greater risk of going into losses\u201d. This is because hedge funds are financially responsible for the investors\u2019 money.High returns alone are not enough, you need high risk-adjusted returns. Most of the developers of algorithmic trading bots in hedge funds start building the software with that axiom in mind.If you feel confident in market analysis or are ready to study financial tips, then you can try to create your own algorithmic trading bot. There are specialized platforms on the market for creating trading\u2026<\/p>","protected":false},"excerpt":{"rendered":"
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