Chapter 2
Taking the Plunge with Hedge Funds
In This Chapter
Paying attention to pricing issues in the fund
Researching and buying into a fund, step by step
Managing liquidity after you enter a fund
Making sense of hedge fund reports
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
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