What is A Hedge Fund?

A Hedge Fund is an often aggressive portfolio of investments that uses advanced investment strategies such as leveraged, long, short and derivative positions in both domestic and international markets with the goal of generating high returns either in an absolute sense or over a specified market benchmark.

Hedge funds are typically open only to a limited range of professional or wealthy investors. This provides them with an exemption in many jurisdictions from regulations governing short selling, derivative contracts, and use of leverage. A hedge fund will typically align itself to a particular investment strategy, investment types and leverage levels via statements in its offering documentation, thereby giving investors some indication of the nature of the fund.

Hedge Fund Investing

Welcome to Hedge Fund Investing. We will be covering all aspects of Hedge Funds from the legal issues to the investments involved. All types of Hedge Funds will be discussed: Short Funds, Macro Funds, Long/Short Funds, Arbitrage, Market Neutral and others.

Hedge Funds cannot be used in typical Retirement Plans like 401(k) Plans, 529 Plans, or 403(b) accounts. They are generally held in "Separate Accounts" for accredited investors only. In addition, Hedge Funds are not stocks, ETFs, mutual funds, or annuities, though they can be invested in one or more of those vehicles.

There is a lot of confusion in the Hedge Fund industry, and we will try to take the mystery out of the concept. Hedge Funds are not for everybody, but it is in your best interest to at least be educated on the basics of Hedge Funds. I found a great news site for financial news investment headlines.

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More to come.....