Hedge Fund

A hedge fund is an investment fund that can undertake a wider range of investment and trading activities than other funds, but which is generally only open to certain types of investors specified by regulators. These investors are typically institutions, such as pension funds, university endowments and foundations, or high-net-worth individuals, who are considered to have the knowledge or resources to understand the nature of the funds. As a class, hedge funds invest in a diverse range of assets, but they most commonly trade liquid securities on public markets. They also employ a wide variety of investment strategies, and make use of techniques such as short selling and leverage.

Hedge funds are typically open-ended, meaning that investors can invest and withdraw money at regular, specified intervals. The value of an investment in a hedge fund is calculated as a share of the fund's net asset value, meaning that increases and decreases in the value of the fund's investment assets (and fund expenses) are directly reflected in the amount an investor can later withdraw.

Most hedge fund investment strategies aim to achieve a positive return on investment whether markets are rising or falling. Hedge fund managers typically invest their own money in the fund they manage, which serves to align their interests with investors in the fund. A hedge fund typically pays its investment manager a management fee, which is a percentage of the assets of the fund, and a performance fee if the fund's net asset value increases during the year. Some hedge funds have a net asset value of several billion dollars. As of 2009, hedge funds represented 1.1% of the total funds and assets held by financial institutions. As of April 2012, the estimated size of the global hedge fund industry was US$2.13 trillion.

Because hedge funds are not sold to the public or retail investors, the funds and their managers have historically not been subject to the same restrictions that govern other funds and investment fund managers with regard to how the fund may be structured and how strategies and techniques are employed. Regulations passed in the United States and Europe after the 2008 credit crisis are intended to increase government oversight of hedge funds and eliminate certain regulatory gaps.

Read more about Hedge FundHistory, Strategies, Hedge Fund Risk, Hedge Fund Structure, Regulation, Hedge Fund Indices, Notable Hedge Fund Firms

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Stichting Pensioenfonds ABP - Investments - Hedge Fund Investments
... NHC manages a $15 billion portfolio of hedge fund investments exclusively on behalf of APG Investments ... NHC provides APG Investments a continuity of professional management of its hedge fund portfolio ... NHC was founded in October 2002 by Ira Handler as ABP's internal fund of hedge funds team and completed a spinout in 2006 ...
The Hedge Fund Journal - Features
... commentary provided by prominent hedge fund managers ... is its annual research table ranking the top 50 European hedge fund managers, The Europe 50 ... Annual people-focused features include The 50 Leading Women In Hedge Funds, and Tomorrow's Titans, which compiles a list of up-and-coming figures within the hedge fund industry ...
Marc Stuart Dreier - Event Timeline
... Federman sues Dreier over client escrow funds the matter ultimately settles ... He pays the bills but also has control over at least 12 client escrow funds ... to various hedge funds and investment funds ...
Mark Spitznagel
... He is among The Wall Street Journal's "5 hedge-fund managers to watch of Wall Street’s biggest, boldest investors." Spitznagel is the founder ... Spitznagel reportedly has large Chinese and Middle Eastern sovereign wealth funds among his investment partners, and he has since closed his funds to new investors ... Prior to hedge fund manager, Spitznagel has been an independent pit-trader at the Chicago Board of Trade and the head of equity options in a secretive proprietary trading group at Morgan Stanley in New York (until ...
Notable Hedge Fund Firms
... Renaissance Technologies Soros Fund Management The Children's Investment Fund Management (TCI) ...

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