What is a Hedge Fund?

[marky]

Flexible investments were initially organized to hold both long and short stocks. The positions were subsequently "supported" to lessen hazard, so the financial backers brought in cash whether or not the market expanded or diminished. The name stuck and the term extended to incorporate a wide range of pooled capital game plans. These assets are restricted to richer financial backers since they accompany higher expenses paid to their supervisors and they in any case include more danger than different kinds of speculations.

 

[Hasan Raza]

A speculative stock investments or Hedge fund is a pooled venture store that exchanges moderately fluid resources and can utilize more intricate exchanging, portfolio-development and danger the board procedures to improve execution, for example, short selling, influence, and subsidiaries.

 

[nasiusman95]

A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio-construction and risk management techniques to improve performance, such as short selling, leverage, and derivatives

Post automatically merged: Feb 7, 2021

A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio-construction and risk management techniques to improve performance, such as short selling, leverage, and derivatives

 

[Mawome]

Hedge fund is absolutely important and necessary to participate in when others are doing it, apart from the stock market related issues, hedge fund is very important in other aspects of business, for example some traders, do weekly contribution they raised a curtain amount of money to support each other.

 

[Bousine123]

Thanks so much for the clarification my friend. Can't stress how well you have made me understand it now. The only thing I don't like about hege funds is the incompetency of some of its managers.

 

[Snazzy001]

What I want to know about the company in question is how would it managed to pay it's investors shoulf the investment strategy crash or go down the drain

 

[Filicit]

A hedge fund or rather speculative stock investments is a pooled venture reserve that exchanges moderately fluid resources and can utilize more intricate exchanging, portfolio-development and danger the board strategies to improve execution, for example, short selling, influence, and subsidiaries.

How safe is hedge fund, is it like the monthly contribution where someone absconds with the money or the is a central lock account for the investment

 

[Nurudeen]

This is a good wxpal of what the hedge funds Really means from you. They just get money from different kind of investors and at the end of the day they make the money available to them in profit

 

[Trexxxy]

True, there are lots of hedge funds out there and the sort of service they offer is also a plus, that is why some institutions keep their member pension funds with some of these hedge funds to increase profits and keep as well.

 

[kinqzbitz]

It is a platform that collect the money of their investors in order to invest in a bigger deal and it pulls capital from financial backers and it is purely about investments

 

[HayKay]

I'll be very suspect about investment in hedge funds because of the aggressiveness of their investment. I'll rather grow wealth slowly than trying all at once and then failing or loosing all of my hard earned money.

 

[Justin]

based on what I have read here, I think hedge fund is simething similar like mutual funds. In mutual funds, your investment will be managed by experts, they take money from you and invest on your behalf.

 

[Blessedsam60]

Hedge Fund is a platform that collects funds from various investors to then be managed with a certain strategy in order to get multiple profits.
Hedge funds target profit aggressively by managing high-risk assets such as stocks, commodity futures, or even derivative instruments in international markets. Every Hedge Fund is designed based on a certain strategy and only uses a certain investment style. Some of the popular strategies employed by Hedge Funds include utilizing leverage and short-selling.

Hedge Fund Players
There are two key players that you should know to understand hedge funds, namely Limited Partners (LP), which are investors whose money is managed by General Partners. LPs must be “accredited,” as wealthy institutions or individuals with a certain minimum amount of money. General Partners (GP ”) who are responsible for managing funds. GP is a pro fund manager who directs LP investments using any strategy employed by hedge funds.

Thanks for this gigantic information given to us right now. I was impacted. Investment hedge funds are more complex and more suitable for aggressive investors and only for accredited members.

 

[Kaffyfolla]

A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio-construction and risk management techniques in an attempt to improve performance, such as short selling, leverage, and derivativ

 

[tyrim88]

This is really new idea i have learnt about some category of stock investors,i just like the idea that some interested persons would gather together and give an investor funds to investe in a promising stock.

 

[Genie01]

As a forex trader, working with an hedge fund can be rewarding .
This is because it affords you the opportunity to leverage on large funds

 

[Lynaia]

I'm sure it must be a one sided business because I'm sure the LP won't have any say on the type of business to do but he will just be releasing funds. That means the business must be a profitable one. The GP must bear the lost if such thing happen.

 

[frederick_9]

A hedge fund is a pooled investment company that trades in highly liquid assets and has the ability to use a variety of risk management strategies, including leverage, derivatives, and short selling, to increase performance.