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 pays a performance fee to its investment manager. Each fund has its own strategy which determines the type of investments and the methods of investment it undertakes. Hedge funds, as a class, invest in a broad range of investments including shares, debt and commodities.
As the name implies, hedge funds often seek to offset potential losses in the principal markets they invest in by hedging their investments using a variety of methods, most notably short selling. However, the term "hedge fund" has come to be applied to many funds that do not actually hedge their investments, and in particular to funds using short selling and other "hedging" methods to increase rather than reduce risk, with the expectation of increasing return.
Hedge funds are typically open only to a limited range of professional or wealthy investors. This provides them with an exemption in many jurisdictions from regulations governing short selling, derivative contracts, leverage, fee structures and the liquidity of interests in the fund. A hedge fund will typically commit itself to a particular investment strategy, investment types and leverage levels via statements in its offering documentation, thereby giving investors some indication of the nature of the fund.
The net asset value of a hedge fund can run into many billions of dollars, and this will usually be multiplied by leverage. Hedge funds dominate certain specialty markets such as trading within derivatives with high-yield ratings and distressed debt.[1]
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CBS News
new york (CBS) Here's a switch: a dozen hedge funds are accusing a California businessman of "playing dirty" with their money and even the name Sarah ...
Hedge funders' suit claims money went to porn investment, swingers ... New York Daily News
Not So Swingin': Hedge Funds Say Money Manager Stole Money For Sex ... FINalternatives
Zealous' Ault Defends Claims Made by 12 Hedge Funds XBIZ Newswire
DealBreaker.Com - FT Alphaville - American Chronicle
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HedgeFundOperationalDueDiligence.com
Wed, 05 Aug 2009 21:49:06 GM
Last week, . hedge fund. manager and certified public accountant, Mark Bloom pleaded guilty in US federal court to charges he faced in the US.
