FINC3017 : Topic-11-Hedge-Funds
Document Summary
Sub-topics include: hedge funds and mutual funds, hedge fund strategies, style analysis for hedge funds. Fee structure in hedge funds: performance measurement for hedge funds, derivative usage by hedge funds. Important differences between mutual and hedge funds are as follows: transparency. Mutual funds are legally required to periodically provide the public with information about portfolio composition (eg in the us by the securities act of. 1933 and the investment company act of 1940) Hedge funds are set up as limited liability partnerships and thus tend to provide only minimal information about portfolio composition and strategy to their investors: investors. Mutual funds are typically offered to the unsophisticated" general public. Hedge funds are exclusivist and tend to have no more than 100. Sophisticated" investors (this is usually defined by net worth and income). For hedge funds, minimum investment is usually ,000-,000,000: investment strategies.
