- If you, or you and your spouse have a network in the excess of 1.5 million dollars.
- You have an individual income of $200000 or an income of $300000 together with your spouse. You’ll have to show that you have and this money within the last two years and that you’d be able to continue to earn it in the foreseeable future.
Are you thinking of investing in a hedge fund and find that you have some lingering questions? We will tackle some of the common questions about hedge funds and hopefully allow you to make a decision on which investment vehicle works for you. What is a hedge fund? A hedge fund describes a structure as opposed to an investment strategy. The structure has a general partner or manager and investors or limited partners, who come together as a limited partnership. They then use different strategies like bonds, stocks, derivatives amongst others to grow their money. What does it mean to hedge? Hedging basically means risk management. The fund manager uses different techniques to mitigate against the risk. For instance, a manager can hedge against a decline in the overall market by selling securities. There are many hedging strategies including selling short, buying and selling of options and, currency future among others. Hedging does not occur on all funds. The decision to hedge is on a case-by-case basis and it is therefore important that you understand a fund’s performance before you decide whether to hedge or not. Who can invest in a hedge fund? There are restrictions on who can qualify to be in a hedge fund. You can qualify to be in a hedge fund if:-