Hedge funds minimal risk

One of these sectors is a pharmacy, to be exact - that the West is called the term "quality of lifeĽ (life sciences). As soon as the population of industrialized countries is becoming better off materially, consumers in the West are willing to spend huge amounts of money to maintain and improve their physical condition.

Health of the community to the forefront of social policy in the West and is becoming a priority of their budget. As a result, companies are able to develop and introduce to the market pharmaceuticals that address serious health issues are rapidly expanding circulation, multiply the profits, with unprecedented growth potential and, therefore, the most progressive dynamics of stock prices of the shares.

All this makes it the world's leading pharmaceutical - companies such as Merck, Pfizer, Eli Lilly, Pharmacia & Upjohn, and Schering-Plough - attractive investment funds. From January 1990 to November 1999 the stock of these companies increased 6.9-fold. Given the dividends paid to investors they brought about 700% of the net profit (23.5% per year), which is 300% ahead of the profitability of the U.S. stock market as a whole, which during this period grew annually by an average of 17.6%.

Particularly impressive was the increase in stocks of leading pharmaceutical corporations the U.S. since 1995, when they developed new products will enable to improve the efficiency of treatment in several key areas of medicine. In just five and a half years - from May 1994 to November 1999 - the shares of these companies have brought investors 422% profit (39.2% per year), and ahead of the market by more than half.

And ... in the technology of the new century

No less attractive is the investment and other areas of this type of hedge funds - the latest telecommunication and computer technologies, serving the main means of transport is the twenty-first century - the Internet. Allowing you to integrate the transfer of large amounts of text, graphics and audio, with its computerized sorting and handling and turning in the most operational infrastructure of commerce, the Internet increases exponentially the size of the business and revenues related firms. From August 1994 to November 1999, the shares of 13 companies that are leaders in the field - such as Netscape, America OnLine, Yahoo, Amazon.Com, E-Bay, CMGI, Cisco Systems, Ascend Communications, Network Associates, and 3Com Corporation - increased by 3845%, 4 times ahead of the market and bringing investors on average 100.2% per annum. Since the beginning of 1998 the index of internet pages of companies increased by 364% (128% per annum). From April 1994 to June 1999, 100 companies-leaders of the American hi-tec, included in the NASDAQ 100, brought investors 662% of net income, that is, an average of 43.5% per year, almost double the average annual increase in the leading index U.S. Stock Market - S & P and NASDAQ. By investing in these companies, hedge funds offered to investors with a long-term approach that will safely carry the temporary market fluctuations, virtually unlimited profit potential.