HEDGEDUCATION - HEDGE FUND ARTICLES

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

There are estimated to be over 10,000 hedge funds in existence today. Because they are not regulated like mutual funds and other investments, information on these funds may be a lot harder to find. Another reason for the scarcity of hedge fund information lies in the fact that only accredited investors, qualified clients, … Continue Reading

While there is no specific formula for how hedge funds work since different hedge funds employ a multitude of different strategies, there are some common characteristics that are present in most hedge funds. All hedge funds start with a hedge fund manager.
This manager brings a specific strategy or investment philosophy to the table. … Continue Reading

Due to the risky nature of hedge funds, the Securities and Exchange Commission requires that investors meet certain minimum requirements. An “accredited investor” must meet one of the following prerequisites as defined by the SEC:

a bank, insurance company, registered investment company, business development company, or small business investment company

an employee benefit plan, within … Continue Reading

A hedge fund is a private investment fund open only to sophisticated investors. Depending on the type of the fund, the investor needs to fulfill the requirement of “accredited investor” or “qualified client.” In most states, hedge funds are not required to register with the Securities and Exchange Commission and are therefore often … Continue Reading