Insider view of the Hedge Funds Industry

TJC: Thanks for joining in. How do you define a Hedge Fund? And how do you see the current state of the Hedge Fund Industry?

Industry Exec: Hedge funds are pooled investment funds with relatively less SEC regulation (in the US), and are therefore different mutual funds. Certain hedge funds are required to register with SEC as investment advisers under the Investment Advisers Act.  The Act does not require an adviser to follow or avoid any particular investment strategies, nor does it require or prohibit specific investments. Hedge funds typically charge a fee greater than 1%, plus a “performance fee” of 20% of a hedge fund’s profits. There may be a “lock-up” period, during which an investor cannot cash in shares. Continue reading