Hedge Funds

A Hedge Fund is an investment vehicle that is available to only the very wealthy investor. Typically a hedge fund is a private investment partnership with a limited number of investors and requires a substantial minimum investment to participate. Hedge funds are not generally regulated since they provide a service for sophisticated investors. Laws dictate that those who invest in hedge funds be accredited, meaning that their annual income must meet a minimum requirement and that their total net worth is over $1 million. The goal of the hedge fund management is to generate high returns by utilizing investment strategies that can involve high risk. Although participants in these funds are experienced investors, it is not uncommon to encounter a fraudulent operation that results in large losses for its investors. An experienced Securities Attorney can help determine if your investment loss warrants legal action.

Has your hedge fund lost a significant amount of money due to fradulent acts by an investor? If so, contact one of our experienced securities attorneys in your area today!

Some complex investment strategies employed by hedge fund managers include:

  • Global Macro
  • Arbitrage
  • Long / Short Equity
  • Emerging Markets

Assets controlled by managers of hedge funds total well over a trillion dollars. The amount of money controlled by these managers and the large positions that they assume in the markets have a great affect on the market as a whole. Investors are attracted to hedge funds because of the large profits possible and also by the knowledge and skill of the particular managers of these funds. In addition to a minimum substantial initial investment, people and institutions who participate in hedge funds also agree to pay management and performance fees. Although large fees are attached to performance, investors feel this gives management a greater drive to be successful since their reward is tied to accomplishment.

While providing a way for wealthy investors to potentially reap large gains, the design and minimum regulation of these funds provides the chance for questionable dealings by those who manage their operation. Those who choose to engage in these types of investments, although perhaps more experienced than the average investor, would still benefit from thoroughly investigating offers made to participate in these opportunities. Security Attorneys have the knowledge and experience that is required to determine the legitimacy of investments and help contribute to success.

Has your hedge fund lost a significant amount of money due to fradulent acts by an investor? If so, contact one of our experienced securities attorneys in your area today!

Updated: LW

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Has your hedge fund lost a significant amount of money due to fradulent acts by an investor? If so, contact one of our experienced securities attorneys in your area today!

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