HEDGEDUCATION - HEDGE FUND ARTICLES

There are many positions within a hedge fund that contribute to its overall success or the lack there-of. But while every player may be integral, hedge funds are a lot like a football team. The failure or success ultimately will be placed on the coach…or in this case, the Portfolio Manager.
The Portfolio Manager, … Continue Reading

The coveted list is here! Forbes magazine has named the World’s Richest, with 1,125 billionaires making the list… the most ever. Warren Buffet took the title of World’s Richest Man, with a fortune of $62 billion. Bill Gates was dethroned for the first time in 13 years, with assets equaling $58 billion.Not surprisingly, hedge fund … Continue Reading

In 1949, Alfred Winslow Jones devised and implemented an investment strategy that would forever brand him as “the father of the hedge fund industry.” While working for Fortune Magazine and investigating financial strategies, Jones decided to launch his own fund and raised a total of $100,000, $40,000 of which was his own money.
Jones employed … Continue Reading

A hurdle rate is the minimum return necessary for a fund manager to start collecting incentive fees. The hurdle is usually tied to a benchmark rate such as Libor (London Interbank Offered Rate) or the one-year Treasury bill rate plus a spread.
Funds which specify a soft hurdle rate charge a performance fee based on the … Continue Reading

In 1859, Charles Darwin introduced his theory on “On the origin of species” through this now famous preamble: As many more individuals of each species are born than can possibly survive; and as, consequently, there is a frequently recurring struggle for existence, it follows that any being, if it vary however slightly in any manner … Continue Reading

Prime Brokerage is the generic name for a bundled package of services offered by investment banks to hedge funds. The business advantage to a hedge fund of using a Prime Broker is that the Prime Broker provides a centralized securities clearing facility for the hedge fund, and the hedge fund’s collateral … Continue Reading

A hedge fund manager and/or any person acting on its behalf may not solicit an investment into a hedge fund through any type of “general solicitation” or general advertisement” … Continue Reading

Aggressive Growth:
Invests in equities expected to experience acceleration in growth of earnings per share. Generally high P/E ratios, low or no dividends; often smaller and micro cap stocks which are expected to experience rapid growth. … Continue Reading

In the hedge fund industry you have one name and one reputation. If you ruin that, you could have influential people in the industry refusing to do business with you for 15-20 years after their initial opinion is formed. In such a competitive, close vested industry where large profits can be made, the temptation … Continue Reading

No longer to be ignored sovereign wealth funds seem to be popping up in the WSJ as often as Ipod advertisements and pink slips for CEOs. These are pools of fully discretionary capital that are controlled by the government an often times but a small financial committee of close political allies to the president or … Continue Reading

A hedge fund manager and/or any person acting on its behalf may not solicit an investment into a hedge fund through any type of “general solicitation” or general advertisement” under Section (c) of Regulation D.
Therefore hedge fund managers rely upon hedge fund advisory services to introduce capital and distribute hedge funds directly to qualified clients. … Continue Reading

Having a hedge fund administrator for your fund is extremely important in today’s constantly changing hedge fund environment. A hedge fund administrator does not manage your portfolios, trade or research, develop products, raise capital, or manage client relationships. These functions are the core functions of your business that tend to be out-sourced infrequently. A hedge … Continue Reading

Internet websites have to be careful with respect to general solicitations and advertising, and thus must limit the content of the website in addition to the people who have access to the site. Hedge … Continue Reading