Super Sumerize By Sean L Johnson

There are plenty of different ways that you can make money, including investing in hedge funds. Hedge funds are a unique type of investment and you have to be able to meet their investing requirements before you can just dive in. Unlike other investment vehicles where you might be able to just start throwing money in, you have to be approved as a worthy investor in order for the fund to allow you to invest.

You will have to provide details of your financial assets and investments, including your stocks, real estate, contracts, commodities, futures, and swaps. You will have two choices of investing to pick from depending on your ability to invest. The accredited investor needs a net worth of $1 million or more while the qualified purchaser will need more than $5 million worth of investments that don't include a primary residence or business property.

Investing in hedge funds is successful because these companies are allowed to make all types of risky moves and aren't as closely monitored by the SEC as other investment vehicles might be. These funds succeed because of leverage, and this leverage is often much higher than most people are used to seeing on a regular basis. Because of the ability to take on higher risks, however, hedge funds are also more risky to potential investors.

Make sure that when you are investing in hedge funds, your fund holds assets in a third-party broker that you have heard of.

Another information about investing is in Education in Forex Trading

 
Hedge Fund Explained

Hedge funds are some money as a fund that collected from some individuals or entities and invest into various instruments of financial. Not all individuals are allowed to participate, they must be qualified into some requirement that defined by the SEC.

If compared with mutual funds Hedge funds have more elasticity in their investment alternatives such as leveraging their position, taking short positions, trading complex derivative instruments, etc.  But as mutual fund they are collected from multiple investors to invest as a single portofolio.

The Investor charged management fee and a performance fee as revenue by Fund Manager. Which various amounts   from 1%-4% annually of funds invested  for Management fees  and performance fees range from 10%-50% of the funds annual return.

As other investment, hedge funds also needed a variety of investment strategies. Some of the strategies that more remarkable are arbitrage, emerging markets, global macro, equity long/short, and fund of funds, distressed securities .

The characteristic structure of Hedge funds as limited partnerships where the fund manager as the general partner and each investor as the limited partners. The fund manager supported by the second line below, administrator support the operation of the fund and junior analysts support the analysis of investment choices.

For more information related to investments, you can read Best Advise Forex Trading for beginners  and  
Futures trading explained