Facts About the Hedge Fund Industry * it is estimated to be a $1 trillion industry and growing at about 20% per year with approximately 8350 active hedge funds. * it includes a variety of investment strategies, some of which use leverage and derivatives while others are more conservative and employ little or no leverage. Many hedge fund strategies seek to reduce market risk … [Read more...]

Key Characteristics of Hedge Funds * Hedge funds utilize a variety of financial instruments to reduce risk, enhance returns and minimize the correlation with equity and bond markets. Many hedge funds are flexible in their investment options (can use short selling, leverage, derivatives such as puts, calls, options, futures, etc.). * Hedge funds vary enormously in terms of … [Read more...]

A hedge fund is an investment fund open to a limited range of investors that is permitted by regulators to undertake a wider range of investment and trading activities than other investment funds, and that, in general, pays a performance fee to its investment manager. Every hedge fund has its own investment strategy that determines the type of investments and the methods of … [Read more...]