Hedge Fund
Hedge fund is a portfolio of investments managed by professionals, usually open to a limited number of wealthy or sophisticated investors. As its name suggests, these funds cover their risk by offsetting potential losses by covering their portfolios with different approaches that have been popular short. Nowadays, the term hedge funds, funds will be used not to “cover” their risks increase, but because they expect a better return on investment.
Investment Fund invested glands in a given sector (eg, technology) or with a specific approach (eg the growth of small CAP). To determine whether a good performance was a discovery whose returns are compared to a market benchmark Financials for example, Russell 1000 Index. Of the guys on the other side of the hedge fund positive absolute return regardless of industry or new standards of performance of this scale.
A constant complaint against hedge funds is that they can easily be regulated and have largely been Unger gelt This is related to investment funds, Investment Company Act, which are regulated under the 1940. Hedge funds are not covered by the 1940 Act, because they participate in private offerings “eaten” Experienced investors only, as opposed to “takeover” of mutual funds. This is also true, why are not required to hedge funds, with the SEC registered under the Securities Exchange Act of 1934. Rasche growth of hedge funds that SEC has requested to study the operation of these facilities in detail. In 2004, the new rules, the Securities and Exchange Commission, which requires hedge funds more than 25 million U.S. dollars in assets under the Act of 1940, recorded when the fund rather than to invest for at least two years.
Have been in the financial crisis of 2008-2009 by the composition of the financial coverage of the selling of funds by the press, the financial debt to be a reason why the crisis has spread so quickly, which is . The fall of Lehman Brothers in 2008 was assigned as a result of selling shares of Lehman, though not enough for shares to cover short positions. This is certainly not the end of the regulation of hedge funds, moving to the crisis was clear that few practical things about which we can hedge funds and operations of the money that is the fund manager of these markets.