AboutDr. Joseph de Beauchamp Expertise Over the decades, I have taught the MBA schools in this subject. I have published on over 2000 public companies. I love to help provide information to the individual and company.
I had assumed that it was a fund that did a lot of arbitraging ("hedging").
But I've asked a number of people and none of them think this is a major determinant for being a "hedge fund".
The problem is: There is no agreement among them other than:
1. A "hedge fund" is only for rich investors.
2. A "hedge fund" escapes the rules and laws that apply to other investment vehicles.
There must be more to a "hedge fund" than this. What *is* a hedge fund?
Many thanks,
Steve
nighttrain@nyc.rr.com
Answer A hedge fund shares in the profits. Usually 20% to the fund of the profits if they can beat the watermark (usually the Dow). From this, the investments vary to the sands in the sea. Mostly for accredited investors, or the rich, and established guidelines of the fund. Since they are partnerships in profit, they do escape the standard mutual fund rules.
