Inside The Hedge Fund
Many people don’t know what hedge funds do, because hedge funds for one can not advertise publicly. Here is the short definition of what a hedge fund is: a private fund for accredited investors. These are investors with $1 million to invest with the fund. Hedge funds are very loosely regulated and because of that have gotten a lot of heat in the last year. Regulators want to raise the minimum for accredited investors up to $2.5 million.
These funds can get very big ranging from a few million to billions. Steven Cohen, one of the more famous managers in the industry has a fund worth more than $10 billion. Funds usually charge a 2% management fee and take up to 40% of the profits made. These kinds of fees have given the fund managers wealth beyond imagination.
Steven Cohen has over $700 million worth of art. When these funds make a move it can move markets. Eddie Lamberts fund single handedly saved Kmart.
