{"id":6386,"date":"2021-05-17T13:21:00","date_gmt":"2021-05-17T13:21:00","guid":{"rendered":"https:\/\/www.bettingwebsites.org.uk\/?page_id=6386"},"modified":"2021-09-16T14:43:05","modified_gmt":"2021-09-16T14:43:05","slug":"sport-betting-hedge-funds","status":"publish","type":"page","link":"https:\/\/www.bettingwebsites.org.uk\/articles\/sport-betting-hedge-funds\/","title":{"rendered":"Sports Betting Hedge Funds"},"content":{"rendered":"
Hedge funds may not be something that you are familiar with, but even if you are, then potentially sports betting hedge funds will be new to you. Obviously, the world of sports betting is something that is continuing to expand. This is largely due to the digital revolution, and former finance professionals have taken their acquired skills to the sports betting world through hedge bets.<\/p>\n
Of course, if this is something new to you, then you will likely want to know what a sports betting hedge fund is. And furthermore, once you’ve read about it, you may want to inform yourself on how to get involved with one. Well, fortunately, you are in luck. We have all of the necessary information for you here on these hedge funds and how they work.<\/p>\n
Before we get into this, though, let’s be clear that we are not offering financial advice here, we are not recommending hedge funds or that you should participate in them.\u00a0 As with all financial markets your investment can go down as well as up and you should consider the risks very carefully before embarking on investing in a sports betting hedge fund.\u00a0 An independent financial advisor may also be able to help you decide if this is something for you.<\/p>\n
Before speaking of sports betting hedge funds specifically, it would be key to know about what a hedge fund in general actually is. Basically, it is an actively managed portfolio of investments. Everything is sort of pooled together in an investment fund, and usually it trades in relatively liquid assets. A hedge fund can also make extensive use of more complex trading, portfolio-construction and risk management techniques as a way of improving performance. Therefore, it is not uncommon to see techniques like leverage, short selling and derivatives coming into play.<\/p>\n
With regard to this article, the hedge funds being discussed throughout are all in relation to sports betting. Hedge funds will only be available and accessible to accredited investors, keep in mind. They do not have as strong a regulation as mutual funds<\/a> or similar lower risk investment options. This is key to remember when deciding upon whether or not to proceed with involving yourself.<\/p>\n In their official capacity, sports betting hedge funds are referred to as \u201csports betting entities\u201d. Essentially, experts will bet with a client\u2019s money, utilising the same principals related to mutual funds. However, instead of betting on traditional financial instruments, they wager on sports, as the name would suggest. The experts are in total control of all the capital that is invested in the fund, and they are the ones who make the sports bets for the clients when hedge fund sports betting is in operation.<\/p>\n It was back in 2004 that Mark Cuban floated the idea of a sports betting hedge fund around on his Blog Maverick weblog<\/a>. Even though this is when the idea was first brought up, it did not actually gain much traction in a wider sense until Centaur Galileo propelled it into a higher sphere in 2009. It didn\u2019t take long for other firms to then follow in the company\u2019s footsteps.<\/p>\n Cuban\u2019s post from November of 2004 stated that he would find the \u201cbest and brightest\u201d experts to do all the betting for him, following a 15-year run of betting on stocks, both long and short. He mentioned that he had done very well with such betting previously, and that 2004 was the time for him to start the sports betting hedge fund. Through his 15 years of trading, he had learned that trading individual stocks was not an efficient way to make money.<\/p>\n It was also the case that he realised that trading was simply an alternative form of gambling<\/a> with many people making random trades without any knowledge behind them. However, if you have enough information about sports and the matches coming up, a sports betting hedge fund sounded much better.<\/p>\n Centaur Galileo may have been the first company to take sports betting hedge funds and run with it, but it didn\u2019t last for a long period of time. In January of 2012, it was reported that the world\u2019s first sports betting hedge fund had actually collapsed<\/a> following a loss of $2.5 million. Prior to launching, the directors of Galileo had told CNBC<\/em> that they were utilising high-level software which had taken five years to develop, and that they were expecting a 15-25% return on investment. How did this fail?<\/p>\n Well, the fund told its investors that the money was lost simply due to \u201cbad luck\u201d. Naturally, this highlighted a certain risk with engaging in sports betting hedge funds. These investments aim for high-risk, high-reward outcomes, and sometimes, large-scale consequences are the end result. Galileo required a minimum of around $135,000 to become an investor, and its number-crunching software allowed the fund to bet on sports with much more accuracy than a causal gambler has.<\/p>\n <\/p>\nWhere Did Sports Betting Hedge Funds Originate?<\/h2>\n
How Exactly Does Hedge Fund Betting Work?<\/h2>\n