Chapter 2

Taking the Plunge with Hedge Funds

In This Chapter

arrow Paying attention to pricing issues in the fund

arrow Researching and buying into a fund, step by step

arrow Managing liquidity after you enter a fund

arrow Making sense of hedge fund reports

arrow Taking care of investment taxes

An open-end mutual fund (described in Book I, Chapter 3) continuously offers stock to the public. You simply find a fund that interests you, fill out a form, write your check, and voilà! You're a mutual fund shareholder. A hedge fund, which is a private-investment partnership, is nothing like that.

To help you navigate your way into and around hedge funds, this chapter explains how to choose the fund that's right for you, how to purchase a stake in the fund, what to do after you're a partner, and how to read the hedge fund reports. Finally, as an investor who's (hopefully!) making money, you need to know what your tax obligations are. This chapter covers that topic, too.

Investor, Come on Down! Pricing Funds

When you buy ...

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