The term “hedge funds” describes a corporate investment structure which pools the money of investors, and managing it at their discretion. Typically, hedge fund managers utilize the funds of the investors, and aim for yields that are above market averages. Depending on the niche the hedge fund is trying to invest in, the yields can be slightly or dramatically higher than stocks. Since hedge funds can invest with less restrictions, both parties can benefit, capitalizing during both rising and falling markets.
In today’s hedge fund market, unfortunately, the opportunities are scattered very thin. Though many hedge fund strategies have failed recently in the equity markets, other types of hedge funds have prospered. Despite the stigma our public media portrays, the hedge fund market is growing steadily and still providing above average yields. In fact, forex and futures hedge funds have become the hot trend, giving investors high yields with no correlation to the equities markets. With this new trend gaining more steam, it seems as if the hedge fund world could never stop growing…
In summary, hedge funds are a great method of building wealth, both as an investor and broker. Remember, hedge funds are a just corporate structure which can apply to any market, and they are never the same. The fact is, some hedge funds have done well recently and some funds have gone insolvent. The difference is always the strategy, and its application to the market niche they are focusing on. If you are interested in more information about hedge fund investing, take a look at the articles in our “Hedge Fund Category”. It contains hedge fund videos,analysis, education and a whole lot more.