Have you heard about Forex, but don’t understand the risks and rewards of investing? If so, click here to learn more about the fastest growing market in the world.


Did you ever wonder what makes Hedge Funds so successful? If so, click here to learn the real story about the hedge fund market, as well as the benefits and risks to hedge fund investing.


Have you heard that Managed Futures Trading is rare and quite risky? Well, click here to learn the facts about one of the most profitable investment markets in the world.


Are you interested in learning more about Private Equity or Venture Capital investments? If so, click here to get more information on the market that fuels wall street.


Are you interested in Private Placement Programs, but don’t know what to believe? If so, click here to start learning fast from someone who has been successful.


What is a Hedge Fund?

hedge-fund-investors-manager-investmentOver the last 10 years, the media has become obsessed with the emergence and growth of the hedge fund market. You take a look in the paper, and hedge funds are making the top headlines. You turn on CNBC, and they’re discussing hedge funds and institutional investing.  With this constant overload of information, you can’t help but ask, “What’s the buzz all about”?

Though almost everyone has heard of the term “hedge fund”, unfortunately, most people don’t REALLY know what it means?  To help spread the truth and clear up any misconceptions, we decided to explain this topic in detail.

A hedge fund is a private investment fund that invests in various assets such as securities, commodities, currencies, and derivatives, all on behalf of its investors. Hedge funds are usually open to a limited range of investors, and some funds can have Billions under management. Typically, the investor pays a performance fee to the hedge fund manager, which is typically their main source of compensation.  For more information on fees, click on Fees for Hedge Fund Investments.

Despite the common misconception, hedge funds are NOT all the same. Each hedge fund has its own investment strategy, and in fact, some funds can be as different as night and day.  For example, there are some hedge funds that ONLY short-sell equity markets after news releases.  On the other hand, there are some hedge funds that ONLY invest in commodities or eco-friendly stocks.  As you can see, hedge funds can be different in every area except one, their goal to profit.

As you may know, hedge funds typically produce higher yields than traditional investments. This is because most hedge funds are private, which allows them to invest in almost any market condition.  For example, hedge funds can legally short-sell when the market is going down, and many mutual funds can not.  This allows hedge fund managers to profit in markets that are growing AND declining, greatly increasing their potential yields.

Though profit is everyone’s goal, negative media attention has lead many to question the economic impact of hedge funds. The real truth is, hedge funds are a tool of the ultra-wealthy, and they play an important role in the world economy.  Without hedge funds, many businesses would NEVER be funded and our investment markets would be far more illiquid. Unfortunately, since hedge funds can produce far higher yields than the rest of the market, they will continue to be a scapegoat for years to come.

Now that you understand the characteristics of a hedge fund, it may be time to dig a little deeper. To do so, scroll down and take a look at the list of Related Articles. Also, if you would like to watch a good video, click on “Billionaire Hedge Fund Managers”.  It is an EYE-OPENING presentation which demonstrates the most profitable investment structure in the world, the hedge fund.

InsideTrade LLC Staff

Phone: (949) 444-2111


  • Jack Pierce said:

    Are hedge funds still worth investing in? I know they are all different but does anyone have any hedge fund connections to look at? I am an investor with 720k and wanted to look at everything, even though I was looking at private placement first. Thanks in advance.

  • Hedge Fund Management, a Crash Course (Video) | InsideTrade LLC said:

    [...] Rules for Investors and Lock Up Money if it is Reasonable 13.  Panic from Volatile Markets Forces Hedge Funds to Sell Assets at the Wrong Time and Lose [...]

  • Highest Paid Hedge Fund Managers (Video) | InsideTrade LLC said:

    [...] Average in 2007 2. Top 5 Hedge Managers Made more than Value of Bear Stearns 3. Over Last 5 Years Hedge Fund Manager Income has Grown 1000% 4. Why Can Hedge Fund Managers Make so Much Money? 5. Hedge Funds [...]

  • Understanding Fees for Hedge Fund Investments | InsideTrade LLC said:

    [...] Hedge Fund [...]

  • DUANE BERRY said:


    Give me a call. I have the right exit startegy for you

    Duane Berry

  • Ilja Kipnis said:

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  • Understanding Hedge Fund Investment Strategies | InsideTrade LLC said:

    [...] the portrait the media may paint, all hedge funds are not the same. In fact, every hedge fund has its own secret sauce which defines its goals, [...]

  • a r prasad said:

    dear sir, can i have tips for eur/usd please as i am trading forex.

  • Klaus Oldigs said:

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