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hedge funds get a lot of attention from wall street
although the assets that are under management in hedge funds are only a
small percentage of the global asset management pool these funds use leverage
to magnify their results so they have a significant impact
inequity and derivative markets i had to find is a private investment private
markets itself almost exclusively to wealthy investors because the middle and
lower classes are generally not allowed to invest in hedge funds due to
financial index the f_e_c_
has historically about these funds to operate with much less regulatory
oversight hedge funds used to be managed and marketed with an idea that gave big
investors rick's initiation
protected from downturns in the market while seeing above average returns in
better times that definition no longer applies and hedge funds are now better
understood as aggressive risk seeking investment funds that typically use
leverage
magnify return with the promise of higher returns hedge funds charge their
investors higher feats that cover the operational costs of the pod however in
addition to operational costs fund managers are also entitled to
performance please if the fund outperforms the fund manager who claim a
percentage of the profits as if the hedge funds can employ various
strategies and started many market global macro and directional hedge funds
typically get the most attention as they will often make march bets on individual
securities or sectors event driven hedge funds concern situations in which the
investment opportunity is associated with an event such as the bankruptcy
relative value funds typically profit from discrepancies between securities
like mutual funds hedge funds offer a flavor to match every investor's taste