Thoughts and musings from my desk to you.

Smart Money? Maybe. Brilliant Money? Never.

Like all industries, there is a pecking order in the investment arena, a hierarchy, if you will. At the top of the financial pyramid are the hedge fund and private equity businesses. At the base of the pyramid is the bank teller. While often grouped together, the hedge fund and private equity businesses are very different since hedge funds normally trade in listed securities that are available to everyone. In contrast, private equity is comprised of companies that don’t trade anywhere. Those listed securities in the hedge fund space could be options, stocks, preferreds, bonds, futures, and may or may not include leverage, or borrowed money.