Hedge Fund
An alternative investment fund using advanced strategies for returns.
Detailed Description
Hedge Fund
What is a hedge fund?
A hedge fund is an alternative investment vehicle that pools capital from accredited and institutional investors to invest in various assets using complex strategies.
What are some common types of hedge funds?
Common types include Global Macro Funds, Long/Short Equity Funds, Event-Driven Funds, Relative Value Funds, and Fund of Funds.
How do hedge funds manage risk?
Hedge funds manage risk through diversification, hedging techniques, stress testing, and scenario analysis.
What are typical fees associated with hedge funds?
Hedge funds typically charge a management fee of 1-2% and a performance fee of around 20% on profits exceeding a benchmark.
Who can invest in hedge funds?
Hedge funds are primarily available to accredited investors, including high-net-worth individuals and institutions, due to the associated risks.