Hedge Funds are professionally managed funds that use a variety of financial instruments, such as stocks, bonds, short-term money market and other securities, in order to generate a return on investment. Hedge funds are designed to produce higher returns than comparable investments (i.e. mutual funds) because it is constructed to "hedge" downturns in the market.
Fast Facts:
- 1949: Alfred Winslow Jones created the first hedge fund
- Hedge fund investors must be accredited, which means they must meet outlined financial criteria
- Hedge funds generally charge a performance fee (the manager's share of positive returns)
- In many states hedge funds are not required to be registered with the SEC
- Participation in a hedge fund is limited and minimum investments are applied
- Hedge funds are not insured by the FDIC
- The hedge fund industry is estimated to be nearly a $1 trillion industry with a 20% annual growth rateMagnum: Facts about the hedge fund industry
2007 Top Fund Managers
Hedge Funds Books
- Amazon.com: Hedge Fund Books
