The hedge funds, known as hedge funds or hedge funds, are very aggressive investment instruments that are usually also very restricted. For restricted be understood that both the number of investors in them is very low, and also the number of rules is large.
Hedge funds with short positions working both as investments in installments, but the main gain of the first kind with the use of financial derivatives. The property on which tend to invest are varied and include shares, property and commodities.
The main feature of hedge funds is the use of short positions. Because this type of investment, the risk of these funds is usually very high, and is therefore only allows a small number of professionals to manage these funds.
For those interested in investing only allowed access through one of these professionals, who charge a commission based on net profits. Say it another way, most of these funds are managed by individuals who have a special license to do so.
The market volume is impressive, in 2008 managed funds with a value of $ 2.5 trillion. The 25 mutual funds in this branch handled a total of $ 519.7 trillion from major companies is JP Morgan, Bridgewater Associates Paulson & Co. and Brevan Howard. These companies charge a commission of 2% annual management and 20% of net income.
Hedge funds usually generate much higher profits to the common investment, but the risk is also higher, due to the force with which the market can move many of its decisions are often kept low profile.
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