What's the difference between a hedge fund and other funds? - hedge fund mayfair
Is it true that the main differences are that hedge funds can be many different derivatives and arbitrage strategies and mutual funds do not? And of course, must invest more in hedge funds than others - I know.
Monday, January 18, 2010
Hedge Fund Mayfair What's The Difference Between A Hedge Fund And Other Funds?
3 comments:
A hedge fund is a limited liability company that are focused on technology investments, mutual funds are not allowed because they are regulated by the SEC. The hedge funds are privately owned, shall be exempted from the Investment Company Act of 1940 for 3 (c) (1) of the Act and are therefore much more flexible and less restricted, which activities may contribute to your interpretation is correct, because the main difference between coverage and mutual funds is that hedge fund activities listed in Annex I may participate, among other things, while mutual funds are not allowed. Hedge funds are considered higher risk because they are not able to participate in these activities, but this hypothesis for all funds. In fact, some funds to activities that are less risky than the average investment is spent, how the historical role of hedge funds was to limit the strategic investment in an attempt to reduce the risk. However, it is distorted and most people now think of high-risk investments in the examination of hedge funds. Just a few ideas, I hope that's what looking for.
Good luck!
Brendan Prewitt
Hedge funds betting against the market and try to stock prices, rather than trying to drive investment funds, stocks come in the purchase price.
The dictionary definition of a hedge fund is as follows:
"An investment group is usually in the form of a limited partnership that speculative techniques in the hope that employed by capital gains"
Sign up to be sold to benefit the general public, a fund must be with the SEC and the promise of the use of diversification and not use short selling and a number of other strategies.
In contrast, a hedge fund can do almost anything they want with minimal, if any, reports. Instead, they can be sold to "accredited investors" (ie, whether rich or pension and endowment funds), and can not advertise, the money is put into the mouth.
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