Welcome to HedgeCo.Net's newest feature!

Our interactive Q & A allows users to participate in an entirely open forum. Post your questions here and our thousands of members will have the chance to provide the answers!



Have questions regarding hedge funds?

Think you've got the answers?


 
  Categories


 
Search for questions


What are hedge funds?
Asked by Surej Sundaram






Answer By Richard Wilson

A hedge fund is a private investment pool of capital which has few restrictions in what types of assets it can invest in. Hedge funds are often ran by a small team of experienced portfolio managers, traders and analysts. Hedge funds earn money by typically charging investors a 2% management fee plus 20% of positive returns past a set point which is often referred to as a hurdle rate. While the hedge funds you often here about in mainstream media are very large with over $10B in assets they represent only .5% of the total universe of well over 12,000 hedge funds.