Chapter 1
Getting the 411 on Hedge Funds
In This Chapter
Discovering basic characteristics and types of hedge funds
Distinguishing between absolute-return funds and directional funds
Perusing the fee structure of hedge funds
Getting a handle on how a hedge fund works
Ensuring that a hedge fund is right for your needs
You see hedge funds in the news all the time, but it's hard to know exactly what they are. That's because, at its essence, a hedge fund is a bit of a mystery. A hedge fund, generally speaking, is a lightly regulated investment partnership that invests in a range of securities in an attempt to increase expected return while reducing risk. And that can mean just about anything.
This chapter covers basic things you need to know if you're considering buying into a hedge fund. It tells you what a hedge fund is and explains who the people involved in hedge funds are, what you have to do to qualify as a hedge fund investor, and more.
Defining Hedge Funds
The term hedge fund ...
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