Tag Archives: hedge fund
What is a Hedge Fund?
A hedge fund is a private investment fund open only to sophisticated investors. Depending on the type of fund, the investor may need 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 regarded as “secretive” or “unregulated.” In actuality, there have […]
Sharpe Ratio Definitions
Interpreting the Sharpe ratio When interpreting the value of a hedge fund or other investment’s Sharpe ratio, it is important to understand the formula behind the number. In this discussion, we will take a closer look at the basic analytics behind the Sharpe ratio, and then consider the effect that each component may have on the calculation. Although the Sharpe […]
Should Hedge Funds Be Regulated?
By Paul Oranika (August, 2007) Hedge funds: Background Issues and Controversies Hedge funds are pools of money from individuals and/or groups of qualified investors who met the requirements of the SEC. Unlike mutual funds, they do not trade on exchanges, and are not registered with the Securities and Exchange Commission; their investors are not granted the same consumer-protection benefits extended to […]
