HEDGE FUNDS

Hedge funds are private, pooled investment funds that seek high returns through varied and often risky investing strategies. They can put participants’ money in about anything, from publicly traded securities and derivatives to currencies, startups, or myriad other assets. Hedge funds are typically organized as private investment partnerships in which the general partner manages the portfolio and makes investment decisions. Hedge funds are typically classified by strategy. Funds-of-hedge-funds are funds that create a diversified portfolio of hedge funds. These vehicles are attractive to smaller investors that do not have the resources to select individual hedge funds and build a portfolio of them. A person’s choices are only really limited by the fund’s chosen mandate.