OPPapers.com Essay Index >> Business >> Hedge Funds
We have many free term papers and essays on Hedge Funds. We also have a wide variety of research papers and book reports available to you for free. You can browse our collection of term papers or use our search engine.
Hedge Funds: Mutual Funds’ Twin Brother? ... Unlike many of the limits imposed on
mutual funds, hedge funds are granted a great deal of privacy. ...
Hedge Funds. The idea of ... Following the market crash of 2000, hedge funds proved
to be a superior asset management vehicle. As many investors ...
hedge funds. ... Investments in hedge funds are illiquid as they often require investors
keep their money in the fund for a minimum period of at least one year. ...
Hedge Funds. ... Hedge funds are no exception and they are estimated to be investing
in large amounts through the Foreign Institutional Investments route. ...
The Effect of Exchange Rate Changes on Hedge Funds’ Net Asset Value. ... Hedge funds
with their diverse strategies do not bare the same risks. ...
Submitted by pcdog on August 19, 2007
Category: Business
Words: 4940 | Pages: 20
Views: 224
Popularity Rank: 44,937
Average Member Grade: N/A (Add a Comment / Grade this Paper)
Discussion topic: Hedge funds
I. Introduction
Hedge funds are private investment funds which charge a performance fee and typically open to only a limited number of investors. They are largely open to accredited investors only. Under Rule 506 of Regulation D of the Securities Act of 1933, accredited investor refers to an institution or high-net-worth individual that meets the following criteria: 1) Net worth higher than $1 million (for individuals or married couples) 2) Annual income greater than $200,000 for individuals or $300,000 for married couples in each of the last two years, as well as a reasonable expectation for such earnings in the current year 3) Employed as an officer or general partner of the fund 4) A bank, licensed broker-dealer, employee-benefit plan, trust or endowment with assets of $5 million or more that exists for a purpose other than investing in the fund.
Hedge funds are limited only by the terms of the contracts governing the particular fund. They may be either long or short assets and may enter into futures, swaps and other derivative contracts. Therefore, hedge funds can follow more complex investment strategies. The funds, often organized as limited partnerships, typically invest on behalf of high-net-worth individuals and institutions. Their primary objective is often to preserve investors' capital by taking positions whose returns are not closely correlated to those of the broader financial markets. Such vehicles may employ leverage, short sales, a variety of derivatives and other hedging techniques to reduce risk and increase returns Because of the substantial risks involved in unregulated, complex, and leveraged investments, hedge funds are normally open only to professional, institutional or otherwise accredited investors. This restriction is often implemented through limits on participating investors or minimum investment amounts.
II. History
The classic hedge-fund concept, a...
You must Login to view the entire paper.
If you are not a member yet, Sign Up for free!