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Showing posts with the label hedge funds

Hedge Funds

A hedge fund is An aggressively managed portfolio of investments that uses advanced investment strategies such as leverage, long, short and derivative positions in both domestic and international markets with the goal of generating high returns (either in an absolute sense or over a specified market benchmark). · Private fund, · Largely unregulated · Pool of capital · require a very large initial minimum investment · Illiquid investments as they often require investors keep their money in the fund for at least one year. · Managers can buy or sell any assets, · Bet on falling as well as rising assets and · Participate substantially in profits from money invested. · Charges both Performance Fees and Management Fees · Typically open only to qualified investors · Dominate certain specialty markets such as trading within derivatives with high-yield ratings, and distressed debt. Fees Charges both a performance fee and a management fee (also known as Incentive Fees) Generally referred as “2 a...