May 20, 2025

Episode 179: Forecasts, Futures, and Funds: Inside the Hedge Fund Playbook

44 minutes

In this episode of Retire with Style, Wade Pfau and Alex Murguia explore the complex world of hedge funds, focusing on strategies like global macro, event-driven, and managed futures. They explain the role of derivatives, the impact of forecasting, and how these approaches can complement a broader investment portfolio, especially in the context of retirement planning.

Takeaways

Derivatives are contracts whose value depends on an underlying asset.

Global macro strategies rely on macroeconomic trends and require strong forecasting skills.

Event-driven strategies aim to profit from corporate actions such as mergers and acquisitions.

Managed futures use trend-following techniques to trade commodities, currencies, and other assets.

Understanding the distinction between futures and options is essential for informed investing.

Hedge funds typically require accredited investor status due to their complexity and risk profile.

Hedge fund performance can vary widely depending on market conditions and strategy selection.

Managed futures often have low correlation with traditional stock and bond markets, offering diversification benefits.

Investors should evaluate how hedge fund strategies align with their broader investment objectives.

Chapters

00:00 Introduction to Hedge Funds and Market Trends

02:34 Understanding Derivatives in Investing

10:14 Exploring Global Macro Strategies

20:29 Diving into Event-Driven Strategies

30:36 Managed Futures: Trend Following Approaches

40:05 Conclusion and Future Discussions

Links

Explore the New RetireWithStyle.com! We’ve launched a brand-new home for the podcast! Visit RetireWithStyle.com to catch up on all our latest episodes, explore topics by category, and send us your questions or ideas for future episodes. If there’s something you’ve been wondering about retirement, we want to hear it!

Join Us Live on YouTube – June 2nd at 2PM ET!

Want to go beyond the podcast and be part of the conversation in real time? Wade and Alex will be hosting a special Retire With Style YouTube Live session, where you can ask your retirement questions and get answers on the spot.

Head over to our YouTube channel now, hit Subscribe, and click the bell to get notified when we go live. We’ll see you there! https://www.youtube.com/@retirewithstylepodcast

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2025! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/

This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips

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By Wade Pfau & Alex Murguia

3.9

153153 ratings