Warren Buffet, an outspoken investor, asserted that investing in hedge funds in modern times is a risk. His sentiments elicited mixed reactions amongst industry fund players with some insisting he is wrong. He noted that investors get duped by fund managers and end up losing on their investments. Mr. Buffet adds that low-cost investments for a long term have proved to be safer for those seeking better retirement plans.
In his letter, Mr. Buffet offers advice that poor returns from mutual investment funds result from the high cost of management and excessive trading. The market is also volatile with unknown risk factors standing on the way. Investors are poorly advised on the possibility of the risks and fund managers concentrate more on luring them into making investments. A list of investors surveyed showed they lacked information on the risks that lay ahead in asset investments. These risks in include a 100% loss on investment in the event of a market downturn.
Timothy Armor Capital funds manager, adds there are no set criteria to determine the performance of an asset management fund company. Lack of defined performance measures leaves investors at the risk of losses despite the high returns that the industry attracts. Timothy continues to add that investors need to research and understand the chosen company and its performance over the years. According to his sentiments, his firm carries an investment history totaling over 653 years with its 18 equity funds investors all that yield profits for investors.
Mr. Armour experience with Capital Group spans for more than 30 years. He currently holds the position of Chief Executive Officer and the chairman since 2015 after the demise of James Rothenberg, his predecessor. During his time with the company, he has amassed a wealth of experience having worked as an equity investment analyst covering global telecommunications and US service companies.
His career at Capital group started as a participant in the associate’s program. He is an economics degree holder having graduated from Middlebury College. Armour also manages money for the company alongside his leadership duties. He is the acting fund manager for the $100 billion American Capital Income Builder Fund among others.