Hedge Funds Hedge funds are unregistered private funds that allow investors to pool their investment assets.
{"Image DocumentName": "Hedge FundsHedge funds are unregistered private funds that allow investors to pool their investment assets.", "Image ImageDescription": "To avoid S.E.C. registration and regulations, hedge funds usually only accept funds from small numbers (often less than 100) of accredited investors, typically high net worth individuals and institutions. Because most hedge funds have only a small number of managers, they typically focus their investment strategies on the expertise of a few key managers. Many hedge funds seek investment opportunities or niches where larger institutions are constrained due to regulatory restrictions. For example, because many banks, pension funds and other institutions cannot focus activities in the securities of distressed corporations, some hedge funds will specialize in such investments. Other funds may specialize in short sales and derivatives to hedge against market downturns and others will simply focus on searches for arbitrage opportunities. Hedge fund managers typically take a proportion of assets invested (2% is a norm) and another portion of profits (20% is typical) as compensation. While hedge funds are frequently able to report results that beat the market, investors should realize that performance results do not usually include the last several months of a hedge fund\u2019s existence, which is when a fund is most likely to fail.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}