What The Heck Is A Hedge Fund, Who Manages Them, And How?

Best Essays

What the Heck is a Hedge Fund, who Manages them, and how?
Michael Rivera
Valencia College
FIN 2100 CRN 20908
Professor Hoyte
April 26, 2015

It is important to stay educated in the world of finance. This includes an education in different types of investments and how they work. Although hedge funds may seem complicated at fist in reality they can be simply stated as sums of money pooled together by investors and are managed by a hedge fund manager and management company that use different strategies to earn a return. Some hedge funds offer high returns but with this comes high risks, similar to most other investments. With the potential for high return comes also high costs of investments. Fund management and managers charge sometimes what are tremendous fees to manage investments, which is how they earn their money. Hedge fund managers are experienced and do not usually find success over-night. To become a hedge fund manager you must become educated in business in financed, express your potential by showing off your knowledge and experience, make the right friends, have the ability to be an effective leader, show how you can use investment strategies, and maybe even develop your own.
Keywords: hedge fund, hedge fund manager, hedging, mutual fund, investment, investors, loan, capital, interest, return, Ponzi scheme

What the Heck is a Hedge Fund, who Manages them, and how? When looking up the phrase “what is a hedge fund” on google you get a lot

Get Access