Participants in hedge funds, Financial Management

Participants in Hedge Funds:

The Sponsor and the Investors

Sponsors are promoters and generally, they hold a profit share on percentage for the capital invested in the Fund. In limited partnerships, they are the general partners and usually receive an allocation of income on the Fund based on performance. General partners also act as intermediaries for investors in Hedge Fund industry. They invest the Fund collected from investors based upon investment strategies to maximize returns.

Generally, investors in Hedge Fund industry are persons or institutions willing to take high risk for high returns. The largest category of investors in Hedge Funds comprises retail and high networth individuals. According to estimates, they contribute about 75 percent of the total assets managed in the Hedge Fund universe. Others who are increasing their investment activities in Hedge Funds are pension funds, endowment funds, fund of Hedge Funds, etc. According to the Securities Exchange Commission (SEC), US guidelines, the minimum level of networth for investment in the Hedge Funds for investors is $1 million. This limit is necessary to qualify them as ‘accredited investor', to participate in Hedge Funds. The limit for investment in Hedge funds for corporations, trusts, and other institutions is $5 million in networth and total assets of $25 million. Percentage of institutional and investors allocating capital to hedge funds for the years 2003 and 2005


Posted Date: 9/11/2012 2:09:27 AM | Location : United States

Related Discussions:- Participants in hedge funds, Assignment Help, Ask Question on Participants in hedge funds, Get Answer, Expert's Help, Participants in hedge funds Discussions

Write discussion on Participants in hedge funds
Your posts are moderated
Related Questions
credit limit decision bajaj electronics company

Describe the general pattern of cash flows from a bond with a positive coupon rate. Cash flows from a bond along with a positive coupon rate contain periodic interest payments an

application of the operating cycle to a vegetable company

1 Explain the difference between a forward start option and a package. Outperformance certificates are offered to investors by many European banks as a way of investing in a com

Question 1: Explain clearly how the study of Public Policy making enables us to understand how Government tackles the major problems of society. Question 2: Analyse th

Q. What is Unsanctioned Expenditure? The expenditure, which is regularly incurred without the sanction of the competent authority or beyond the sanctioned limit of funds provid

Determine about the Shareholders Shareholders, being the owners of the company, elect board of directors and vote on major issues that affect functioning and long term plans of

Q. Weighted Average cost of Capital? When the company capital structure is made from equity share capital , debenture and Preference share capital , then we calculated the comb

After read all the available information carefully, prepare a two page (double-spaced) essay and answer the following questions: Assume that we have the following data: C=100+0.50Y

explain the concept of working capital.what are the factors which influence the working capital?