Investors tend to stick with price-to-earnings ratios, or return on equity calculations to see how their favorite firms are performing. But earnings can be easy to manipulate, and any calculation gleaned from net earnings might not give investors a real representative look into a company.
So, when making decisions matters, and accuracy of information is paramount, investors often turn to free cash flow figures to find good investments.
Free Cash Flow
The American real estate market may be underwater, but a new buyer is stepping into the ring to boost market prices – hedge funds.
Historically, hedge funds have been limited to investments in the stock and bond markets. In fact, their name is derived from a market strategy (hedging) where fast traders move in and out of a position to profit on minute differentials in security pricing from market to market. Recently, high frequency trading has made hedge funds even more profitable.
But now hedge funds want a piece of main street. The new asset class of the hedge fund universe is the single family home.
Real Estate Needs Hedge Funds
Economy, Real Estate
Have you noticed lately that real estate investments aren’t being discussed as investment vehicles for the highly-leveraged; in fact, I think I’ve read more data about unleveraged real estate investments in the past two weeks than I have my whole life.
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