Is the DRS similar to a Hedge Fund?
The term “Hedge” in Hedge Funds is actually a misnomer. Hedge Funds may or may not use hedges regardless of what their name implies. These funds became popular through the 1990s with fund managers because of the high management fees which could be charged and because of lower regulation requirements by the SEC for accredited (i.e. high net-worth individuals). Some of these Hedge Funds reported substantial returns over short periods of time (several months to several years) with little or no disclosure on the nature of their investments and/or the risk and leverage used in the strategies. While the name “Hedge Fund” seems to imply that investor capital is somehow protected or capped for losses, no such mechanism was enforced or required for these funds. When some of these funds collapsed during market downturns or periods of extreme volatility, the investors were left with little or no capital and little or no recourse. Swan Consulting, Inc.’s DRS, on the other hand, has specific compon
