Hedge Fund is a platform that collects funds from various investors to then be managed with a certain strategy in order to get multiple profits.
Hedge funds target profit aggressively by managing high-risk assets such as stocks, commodity futures, or even derivative instruments in international markets. Every Hedge Fund is designed based on a certain strategy and only uses a certain investment style. Some of the popular strategies employed by Hedge Funds include utilizing leverage and short-selling.
Hedge Fund Players
There are two key players that you should know to understand hedge funds, namely Limited Partners (LP), which are investors whose money is managed by General Partners. LPs must be “accredited,” as wealthy institutions or individuals with a certain minimum amount of money. General Partners (GP ”) who are responsible for managing funds. GP is a pro fund manager who directs LP investments using any strategy employed by hedge funds.
Hedge funds target profit aggressively by managing high-risk assets such as stocks, commodity futures, or even derivative instruments in international markets. Every Hedge Fund is designed based on a certain strategy and only uses a certain investment style. Some of the popular strategies employed by Hedge Funds include utilizing leverage and short-selling.
Hedge Fund Players
There are two key players that you should know to understand hedge funds, namely Limited Partners (LP), which are investors whose money is managed by General Partners. LPs must be “accredited,” as wealthy institutions or individuals with a certain minimum amount of money. General Partners (GP ”) who are responsible for managing funds. GP is a pro fund manager who directs LP investments using any strategy employed by hedge funds.