2007-03-08 23:51:03 · 5 answers · asked by anoop s 1 in Business & Finance ➔ Investing
a hedge fund is an unregulated pool of investment capital that typically invests in securities. it differs from investment companies and UCITS and FCPs and other regulated forms of investment pools, in that there is no government registration or supevision of their investment activities generally.
2007-03-08 23:58:38 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Hedge funds use alternative strategies to offset other risks in one's portfolio. Because they are not subject to many of the restrictions place on traditional funds, they are considered by the SEC as high risk; though in reality their intent is to mitigate risk.
In order to invest in a hedge fund, one must be an accredited investor. This is defined as someone with a minimum annual income of $200,000 (or $300,000 joint) for the last two years and a reasonable expectation of same for the current year; or a net worth of $1 million (I've heard rumor that that may change to $2.5 million). Also, certain registered securities representatives are exempt from these income/net worth requirements.
2007-03-09 10:44:44 · answer #2 · answered by Rob D 5 · 1⤊ 1⤋
simply, Hedge Fund is a basket of securities, where you can be long/short & use other financial instruments besides stocks & bonds. Risky & very High Fees
http://www.letsgobble.com/
2007-03-09 11:00:34 · answer #3 · answered by chase11209 2 · 1⤊ 1⤋
Balancing ur risk of loss (captial/profit) with another camparatively small investment
2007-03-09 12:42:01 · answer #4 · answered by dinu_pawar 5 · 0⤊ 0⤋
its a portfolio that's supposed to be risky.
Look her:
http://www.investopedia.com/terms/h/hedgefund.asp
2007-03-09 08:00:51 · answer #5 · answered by saif6020 2 · 1⤊ 1⤋