Tag Archives: start a hedge fund

Drake and its Global Opportunities Fund

After a much publicized debate on their troubled hedge funds, Drake Management has decided to shut down its $2.5 billion Global Opportunities Fund (summer of 2008). Drake had suspended redemptions in December of 2007, after the fund lost 25% of its value and investors rushed to withdraw money. Investors were denied the action of “liquidating investments in a market characterized […]

The History of Hedge Funds

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 two strategies still used heavily […]

What is an Offshore Hedge Fund?

Hedge funds structured under foreign law, or located outside the U.S. are designated as “offshore hedge funds.”  Managers who desire to start a hedge fund offshore can enjoy several advantages over their domestic contemporaries. One advantage is that the fund and its investors are not subject to United States taxation. Another advantage is that since the number of accounts in […]