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What is a Hedge fund?

 

A group of investors with a common ground, that invest their money in a hedge fund. the goal of the fund is to gain profit in every situation in the market, usually by finance fund - and from here its name


Unlike a regular mutual fund, which is invested in solid channels such as bonds or stocks stability, hedge fund aims to maximize profits while investing in a volatile market, short sales and financial leverage, which are hedged risks are known in advance. In addition, quite a few mutual funds abandon the investment methods classical and strategies as well employ a falling market The investment strategies of hedge funds change between sustainability and resilience of the fund driven by changing from one fund risks

In recent years, hedge funds are gaining momentum mainly because of their success to yield a higher return average indices (excess return) within three decades


Investment Amount
Because of different economic strategies, fund managers tend to set high entry barrier which stands at one million dollars


Management fees and success fees
Hedge funds charge management fees and success fees in the amount of between 10-50 percent profit
Measure of success is the return on the fund's record


Hedge fund regulation
Until recent years of hedge fund regulation was very loose. In recent years, due to the negative returns records of the number of funds, especially in the US authorities began to worsen the monitoring of radiation

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