Hedge Fund Managers
By definition, “hedge fund managers” are the main advisors within the fund who make investment decisions on behalf of their investors. In nearly all hedge funds, there is a main hedge fund manager, and advisors who assist them with their analysis. For performing this service for their investors, the hedge fund manager is compensated with two separate fees. The first is an annual “management fee” which is usually 2-3% of the principal invested. The second is an “incentive fee” which is typically 20-30% of total profits. Overall, with high yields and fair fees, you can see why many investors have become quite interested in hedge funds.
In today’s hedge fund market, unfortunately, the opportunities are far and few between. Though many hedge fund strategies HAVE failed in the equity markets, other types of hedge funds have prospered during that same time. Despite the stigma the media presents, the hedge fund market is growing steadily and still providing high yields. In fact, forex and futures hedge funds have recently become the hottest trend, allowing investors to aim for high yields with no correlation to the equities markets. As a hedge fund investor, wouldn’t you want to the chance to earn double digit yields every month? The answer is obvious, hence the new growing trend in the hedge fund markets.
To summarize, hedge funds are a great investment vehicle for building wealth, whether you’re a broker or investor. Always remember, hedge funds are a just corporate structure which can apply to any market, and no two hedge funds are the same. The truth is, some hedge funds did very well in the recent crisis, and others became insolvent. Do yourself a favor and ignore the stigmas of the hedge fund market, it could earn you Millions in the end.
If you are interested in more information about hedge fund investing, take a look at our “Hedge Fund Category”. It contains hedge fund videos, articles, education, and plenty more for you to chew on. Whether you are an investor or broker, the reality is, the hedge fund market will only get bigger. The only question is, do you want to earn money during that time, or not?