A hedge fund is an aggressively managed portfolio of investments that uses leveraged, long, short and derivative positions.
| Hedge Fund | Hedge funds are alternative investments using pooled funds that employ numerous different strategies to earn active return, or alpha, for their investors. Hedge funds may be aggressively managed or make use of derivatives and leverage in both domestic and international markets with the goal of generating high returns (either in an absolute sense or over a specified market benchmark). It is important to note that hedge funds are generally only accessible to accredited investors as they require less SEC regulations than other funds. One aspect that has set the hedge fund industry apart is the fact that hedge funds face less regulation than mutual funds and other investment vehicles. | | Breaking it Down: | Each hedge fund is constructed to take advantage of certain identifiable market opportunities. Hedge funds use different investment strategies and thus are... Read More | | | What Are Hedge Funds? | Hedge funds may be similar to mutual funds in some ways, but they differ in many others. Learn their distinctions and characteristics here. Read More | | | | | | | | | Carried Interest | Carried interest is a share of any profits that the general partners of private equity and hedge funds receive as compensation. Read More | | | Two And Twenty | A type of compensation structure that hedge fund managers typically employ in which part of compensation is performance based. Read More | | | | Blow Up | A slang term used to describe the complete and abject failure of an individual, corporation, bank, development project, hedge fund, etc. Read More | | | Accredited Investor | Accredited investor has the financial sophistication and capacity to suffer losses that enable him to avoid certain protections of the SEC. Read More | | | | | | | | | Follow Us: | | | | | | | | |
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