what is a hedge fund manager?

Answer 1

Hedge Fund managers are people like myself who runs and manages a hedge fund. A hedge fund is similar to a mutual fund in that it is a fund that you can buy into. There are some main differences though:

1. You need to be an accredited investor to invest in an US based hedge fund. An accredited investor is defined as :
- A natural person with an individual net worth, or joint net worth with his or her spouse, at the time of purchase in excess of $1,000,000;

- A natural person with an individual income in excess of $200,000, or in excess of $300,000 with his or her spouse, in each of the two most recent years and who has a reasonable expectation of an income in excess of $200,000 individually, or in excess of $300,000 with his or her spouse, in the current year;
Any executive officer, director or general partner of the issuer of the securities offered;

- An employee benefit plan within the meaning of Title I of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), (a) whose investment decisions are made by a plan fiduciary, as defined in Section 3(21) of ERISA, which is either a bank, insurance company or registered investment adviser; or (b) having total assets in excess of $5,000,000; or (c) if self-directed, the investment decisions are made solely by persons that are accredited investors;

- A trust, with total assets in excess of $5,000,000 which was not formed for the specific purpose of acquiring an interest in the hedge fund, whose purchase is directed by a sophisticated investor; and

- An entity in which each of the equity owners are accredited investors.

2. Because hedge funds are not tightly managed with a fixed mandate and are loosely governed by SEC, a hedge fund manager can pursue all kinds of strategies including the use of derivatives in order to extract wealth from the capital markets.

3. That is why good hedge funds always outperform mutual funds.

4. A hedge fund manager usually have his or her own money in the fund itself. This is different from a mutual fund as most mutual fund managers are not supposed to have their own money in the fund in order to avoid conflicts of interest. In this respect, a hedge fund manager has more vested interest in making sure the fund succeeds.


Hope this helps.

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Answer 2

a person who manages risk. see more below

What is a "Hedge Fund"?
Hedge funds are investment vehicles that explicitly pursue absolute returns on their underlying investments. The appellation "Absolute Return Fund" would be more accurate, not least as not all hedge funds maintain an explicit hedge on their portfolio of investments. However the "Hedge Fund" definition has come to incorporate any absolute return fund investing within the financial markets (stocks, bonds, commodities, currencies, derivatives, etc) and/or applying non-traditional portfolio management techniques including, but not restricted to, shorting, leveraging, arbitrage, swaps, etc. Hedge funds can invest in any number of strategies and they are perhaps most readily identifiable by their structure, which is typically a limited partnership (the manager acting as the general partner and investors acting as the limited partners) with performance related fees, high minimum investment requirements and restrictions on types of investor, entry and exit periods.

What does it mean to "hedge"?
Not, in fact, an esoteric gardening term, to "hedge" means to manage risk.
Any given money manager may make an allocation/investment that could be described as speculative; if this same manager simultaneously makes an allocation to an allocation/investment specifically designed to balance or counter-act any negative performance from his speculative position then this would be his hedging position.
There are many types of perceivable risk - Market, Interest rate, Inflation, Sectoral, Regional, Currency, etc. Hedge fund managers utilise the complete arsenal of financial weapons (holding cash, short selling, buying selling or swapping options, futures, commodity and/or currency futures, etc.) and are expert in concocting hedging positions for most conceivable risks.

Answer 3

Someone who manages a hedge fund

Answer 4

The financial question as to whether you have enough money to grow a new hedge

Answer 5

The pick up on trends in many markets ie asia is booming at the momenrt and they stick our money in there to mnake millions thats were our bank money goes ( in other words they stick money on the stock echange but direst into companys)

Answer 6

a privet financier?