This presentation will give users a general overview of many aspects of the industry and its purpose, including:
• The benefits of hedge fund investing
• Who invests in hedge funds?
• Who regulates the hedge fund industry?
• The various strategies and types of hedge funds
• How do hedge funds generate returns for their investors
Learn more about the global hedge fund industry at: www.hedgefundfundamentals.com.
The law firm's investment management practice represents a full range of U.S. domestic and non-U.S. clients
in all aspects of their organization and operations. Our clients include start-up investment managers/advisers and
investment funds, seasoned private equity and venture capital professionals and established/industry-recognized investment companies and institutions.
The law firm's investment management practice represents a full range of U.S. domestic and non-U.S. clients
in all aspects of their organization and operations. Our clients include start-up investment managers/advisers and
investment funds, seasoned private equity and venture capital professionals and established/industry-recognized investment companies and institutions.
Here I am Sharing Presentation about Mutual Fund Which is beneficial for Finance Student. Who one want to know details of mutual fund can see this slide this will be helpful to the student of finance.
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Here I am Sharing Presentation about Mutual Fund Which is beneficial for Finance Student. Who one want to know details of mutual fund can see this slide this will be helpful to the student of finance.
All The Best
Investment products vary in risk, return and duration. So do investor objectives. Successfully matching financial instruments with financial plans takes skill, know how and ability.
A mutual fund is a type of professionally managed collective investment scheme that pools money from many investors to purchase securities. While there is no legal definition of the term "mutual fund", it is most commonly applied only to those collective investment vehicles that are regulated and sold to the general public. They are sometimes referred to as "investment companies" or "registered investment companies."
Hedge funds offer qualified investors a unique partnership. While hedge funds first began as a way to offer investors a balanced – or market-neutral – approach to investing, the methods have evolved through the years. This presentation focuses on one of those strategies, relative value.
Hedge funds offer qualified investors a unique partnership. While hedge funds first began as a way to offer investors a balanced – or market-neutral – approach to investing, the methods have evolved through the years. This presentation focuses on one of those strategies, multi-strategy funds
Hedge funds offer qualified investors a unique partnership. While hedge funds first began as a way to offer investors a balanced – or market-neutral – approach to investing, the methods have evolved through the years. This presentation focuses on one of those strategies, event driven.
Hedge funds offer qualified investors a unique partnership. While hedge funds first began as a way to offer investors a balanced – or market-neutral – approach to investing, the methods have evolved through the years. This presentation focuses on one of those strategies, managed futures.
Hedge funds offer qualified investors a unique partnership. While hedge funds first began as a way to offer investors a balanced – or market-neutral – approach to investing, the methods have evolved through the years. This presentation focuses on one of those strategies, credit funds.
This educational resource details the traditional calculation method that hedge funds use for their assets under management. It also explains the new method of calculation used by the Securities and Exchange Commission, called Regulatory Assets Under Management (RAUM).
Hedge Fund Due Diligence: Resources to Help Investors Better Understand Their...HedgeFundFundamentals
In light of recent changes brought forth by the new rules adopted by the Securities and Exchange Commission (SEC) implementing the Jumpstart our Business Startups (JOBS) Act, this presentation is designed as an educational tool with basic information about who can invest in hedge funds as well as some potential red flags regarding investment fraud.
Short Selling: An Important Tool for Price Discovery and Liquidity in the Fin...HedgeFundFundamentals
The new presentation gives users valuable information about how hedge funds and other investors participate in the marketplace through short selling.
As the presentation describes, short selling generally means borrowing an asset (a security/stock, commodity futures contract, and corporate or sovereign bond) from a broker and selling it, with the understanding that it must later be bought back (hopefully at a lower price) and returned to the broker. The short seller then closes out the short position by buying equivalent securities on the open market, or by using an identical security it already owned, and returning the borrowed security to the lender.
As many news stories highlight short selling as a negative force in our markets, the new presentation explains how short selling can be a way for investors to communicate their view on the price of an asset. Short selling also provides many other critical benefits to investors, including:
• Risk management for hedging long positions and managing portfolio risk
• Increasing efficiency in the marketplace because the transactions inform the market with their evaluation of future stock, bond, or commodity price performance
• Lowering overpriced securities by encouraging better price discovery
• Providing liquidity by increasing the number of potential sellers in the market
Learn more about the global hedge fund industry at: www.hedgefundfundamentals.com.
This educational infographic offers users a straightforward view into the many strategies that hedge funds utilize to provide portfolio diversification, risk management, and reliable returns to their investors.
Included among the strategies featured in the infographic are:
Long/Short Equity Funds
Global Macro
Event Driven
Relative Value
Credit Funds
Quantitative Funds
Multi-Strategy Funds
Managed Futures (CTAs)
Learn more about the global hedge fund industry at: www.hedgefundfundamentals.com.
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.
This presentation offers users a simple guide to learning the basic structure of hedge funds. Guiding users through hedge fund structures, covering topics such as:
• Hedge funds’ typical partnership structure
• Organizational structure at many hedge funds
• Due to their structure, only certain types of investors can invest with hedge funds
• The role of portfolio managers
• The typical role of general counsels, auditors, and administrators at hedge funds
• How prime brokers interact with hedge funds
• Executing brokers and their role in the hedge fund industry
• Fee structure at hedge funds
Learn more about the global hedge fund industry at: www.hedgefundfundamentals.com.
This helpful presentation takes an in depth look into the many issues surrounding this important topic in the hedge fund industry, clearing up misconceptions and offering a thorough explanation of the reasons behind offshore investing.
Included in this presentation among other topics, users will find information regarding:
How hedge funds are structured
The composition of hedge fund investors
Reasons why investors choose offshore hedge funds
The various domiciles in which hedge funds operate
How hedge funds accommodate the needs of various investors
Learn more about the global hedge fund industry at: www.hedgefundfundamentals.com.
Hedge funds originated as a vehicle to help diversify investment portfolios, manage risk and produce reliable returns over time. While hedge funds’ investor base has evolved over the years – from individuals to institutions such as pensions, universities and foundations – their core goals have not.
This presentation provides a brief overview of the investment approach hedge funds offer their partners.
It also illustrates the many ways hedge fund investments benefit communities and individuals.
Learn more about the global hedge fund industry at: www.hedgefundfundamentals.com.
1. WHAT IS A HEDGE FUND?
UNDERSTANDING AN IMPORTANT TOOL THAT CREATES VALUE, DELIVERS RELIABLE
RETURNS, MANAGES RISK, AND DIVERSIFIES INVESTMENTS
2. What is a hedge fund?
Contents
The hedge fund industry has grown in recent
years to be a leading investment partner for
institutions and individuals around the world.
While hedge funds have become a popular,
often-utilized investment tool, the industry is
still misunderstood.
Table of Contents:
What is a hedge fund?
What is their purpose?
How do they work?
Who do they benefit?
Hedge Funds Defined
4
5
Who Invests
6
How Do Hedge Funds Invest
•
•
•
•
3
How Are Hedge Funds Regulated
This presentation serves as a basic
introduction to the hedge fund industry,
answering the following questions:
The Origin of Hedge Funds
8
Hedge Fund Types
9
How They Work
10
Who Benefits
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3. What is a hedge fund?
The Origin of Hedge Funds
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.
Hedge Funds Provide:
Portfolio Diversification
Risk Management
Reliable Returns
Over the years, hedge funds have evolved from an investment vehicle for wealthy
individuals to a tool used by pensions, corporations, unions, universities, non-profits and
high-net-worth individuals use to diversify their investments, manage risk and deliver
reliable returns so they can meet their financial obligations and goals.
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4. What is a hedge fund?
Hedge Funds Defined
A hedge fund is an investment vehicle that can employ a wide range of investment and trading
activities to maximize performance returns while minimizing investment risk.
Minimize Investment Risk
Maximize Performance Return
4
5. What is a hedge fund?
How are Hedge Funds Regulated?
Virtually all countries with significant financial markets have
regulatory authorities that regulate hedge funds and
managers. These include:
• In the United States, the Securities and Exchange
Commission and the Commodity Futures Trading
Commission regulate hedge fund managers and the managed
futures industry, respectively.
• In Europe, each country has its own regulator, which are then
complemented by the European Securities and Markets
Authority (ESMA) that provides a coordinating role among
competent regulators in the member states and technical
advice on hedge fund issues to the European Commission.
• Regulators in Asia with authority over managers include,
among others, Hong Kong’s Securities and Futures
Commission and the Monetary Authority of Singapore.
• International organizations play a role in assessing regulation
on hedge funds including the Financial Stability Board (FSB)
and the International Organization of Securities
Commissions (IOSCO).
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6. What is a hedge fund?
Who Invests?
Because hedge funds are highly regulated, fund managers can only accept investment
capital from accredited investors or qualified purchasers, including:
1. Public employee retirement plans
2. Corporate employee retirement plans
3. University endowments
4. Foundations and non-profit organizations
5. Family Offices and high-net-worth individuals. Regulatory qualifications for high-net-worth
individuals are outlined below.
An individual whose net worth, or joint net worth with the person’s spouse, exceeds $1 million at the time of
the purchase, excluding the value of their primary residence
Individuals with a yearly income of $200,000 or higher in each of the two most recent years or joint income
with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level
in the current year.
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7. What is a hedge fund?
Who Invests?
More than half – 66 percent, according to research firm Preqin – of global hedge funds assets
are held by institutional investors including public and private employee pension plans,
university and college endowments and charitable organizations.
*Source: 2014 Preqin Global Hedge Fund Report, January 2014
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8. What is a hedge fund?
How do hedge funds invest
Hedge funds invest in a wide range of assets across capital markets globally, including:
Common Stock
Bonds
Commodities
Currencies
Diversification helps hedge funds to:
• Create a stable portfolio
• Avoid over-concentration in a specific type of asset
• Protect investments from risk in market fluctuations
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9. What is a hedge fund?
Hedge Fund Types
There are many unique types (commonly called strategies) among the 9,900* various hedge
funds active globally. Strategy examples include:
• Global Macro Hedge Funds
Traditional
Long / Short Hedge Funds
Evaluating economic variables to determine market impact and identify investment
opportunities
Investing in equity securities, holding stocks for varying lengths of time to balance risk
and produce return on investment.
Event-Driven
These funds maintain positions in companies involved in corporate transactions
including mergers, restructurings, financial distress, tender offers, shareholder
buybacks, debt exchanges, security issuance or other capital structure adjustments
Managed Futures
Known as commodity trading advisors (CTAs), these funds invest in up to150 global
futures markets, trading in everything from grains to gold, currencies and stock
indexes.
While each hedge fund calibrates its own degree of risk and return, their singular investment goal is to deliver
positive return to their investors while carefully managing away downside risk due to market fluctuation.
For a list of the various strategies common among U.S. hedge funds, click here.
*Source: Hedge Fund Research
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10. What is a hedge fund?
How They Work
Unique to the investment community, hedge funds are a partnership formed between the
fund manager and the investors.
Typically hedge fund managers invest a significant amount of personal capital - in some
cases in excess of 50 percent of the total assets in the fund - aligning their interests with
that of their investors.
Hedge Fund
Investment Capital
Investor
Capital
Managers'
Capital
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11. What is a hedge fund?
Who Benefits?
Hedge fund investments benefit local communities and residents in ways that are not
commonly explained or understood.
Institutions partner with hedge funds in order:
•
Help strengthen retirement security for millions of public and private sector workers
•
Provide funding for scholarships and research grants for colleges and universities
•
Help fund critical economic, health-related and social development projects in local
communities across the nation.
Click here for an interactive map detailing how hedge funds benefit communities across the U.S.
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