May 28, 2021

Don’t Be Fooled: Hedge Funds Aren’t the Bad Guys

The Role of Hedge Funds
Don’t Be Fooled: Hedge Funds Aren’t the Bad Guys

Key Takeaways

  1. Hedge funds secure financial stability for thousands of everyday Americans in South Dakota.
  2. Across the state, hedge funds deliver $1.4 billion for retirement security, college education, and nonprofits and charities.
  3. “This critical component of the economy exists on Wall Street but delivers for Main Street Americans.”

Hedge funds pass along their gains to institutional investors in South Dakota such as pensions and college endowments. Learn more from South Dakotan and business leader Jeana Goosmann, who writes about the value hedge funds provide in a blog post for the South Dakota War College. Key excerpts can be found below:

“Hedge funds, a misunderstood but highly active aspect of the financial services economy, work to secure financial stability for millions of Americans and deliver for South Dakota.”

“Many people don’t realize that university endowments, non-profits, and pensions invest in hedge funds to grow their market portfolios. It happens across the country and it happens here in South Dakota. As these hedge fund–managed portfolios grow, the gains are passed on to underlying investors. In many cases, that means retirees, charities, and aspiring college students.”