What is a Hedge Fund Infographic

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Hedge Fund Fundamentals' first educational infographic provides an easy-to-read and accessible way to learn basics about hedge funds. Not only will users learn about industry assets under management, when hedge funds were created, and how they assist institutional investors meet their financial obligations, but the infographic also offers graphic representations of various aspects of the industry and its benefits to investors.

Learn more about the global hedge fund industry at: www.hedgefundfundamentals.com.

Published in: Economy & Finance
  • Question to Mr Ng - if rich investors are so dumb, why are they rich ?
    20% commission of gains can be reasonable for appropriate gains to the investor. It all has to be how much the investor makes, not the charges. You sound like my brother in-law
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  • You forgot to mention: Hedge funds take a customary 2% fee (at least double what an ordinary mutual fund charges), PLUS 20% of gains over whatever the benchmark is. It's not all that clear that the average hedge fund has better long-term returns or lower price volatility than an S&P 500 index fund. It's also not clear that investors are actually able to identify the exceptional hedge funds a priori. Who benefits is more the hedge fund managers: unless they actually have to liquidate the fund at a loss, they can just keep in raking in the 2 and 20 fees sent by institutions and rich investors who are too dumb to see the truth.
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  • Thanks dude..I'm happy you explained all that..
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What is a Hedge Fund Infographic

  1. 1. WHAT IS A HEDGE FUND? The roots of the modern day hedge fund industry date back to 1949 when a man by the name of Alfred Winslow Jones began employing an investment strategy that offset long equities positions with short positions in order to better manage risk. This balanced approach now defines today’s hedge fund industry. WHAT IS THEIR PURPOSE? Hedge funds employ a wide range of investment and trading activities to maximize return while minimizing risk. PORTFOLIO DIVERSIFICATION OPPORTUNITIES FOR ASSET GROWTH 1949 Hedge funds invest in a range of assets, including common stock, bonds, commodities, futures and other vehicles. RISK MANAGEMENT Portfolio diversification helps Protect investments from market volatility Provide hedge funds with stable returns over time Prevent over-concentration in specific assets There are nearly 10,000 active hedge funds globally. Hedge funds manage more than $2.63 Trillion in assets. There are many unique investment strategies common among the various hedge funds active in the U.S., for example: Global Macro Managed Futures Quantitative funds Equity Funds 1 2 Relative Value Source: HedgeFund Research WHO INVESTS? Hedge funds are a direct partnership formed between the fund manager and his/her investors. Typically hedge fund managers invest a significant amount of personal capital, aligning their interests with their investors. PUBLIC AND CORPORATE PENSION PLANS UNIVERSITY ENDOWMENTS CHARITABLE FOUNDATIONS HIGH NET WORTH INDIVIDUALS AND FAMILY OFFICES 66% OF GLOBAL HEDGE FUNDS ASSETS COME FROM PENSIONS, COLLEGES, NON-PROFITS AND OTHER INSTITUTIONAL INVESTORS. Preqin WHO BENEFITS? These investments benefit local communities and residents in ways that are not always explained or well-understood. Institutions partner with hedge funds to: Retirees–fund retiree benefits and ensure retirement security for millions of U.S. and global pensioners Colleges and Universities– to help fund investments that provide scholarships and research funding and operating income for the university Communities–because hedge fund investments help fund the work of national and community foundations and non-profit organizations HEDGE FUND fundamentals

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