Friday, April 15, 2011

Hedge Funds Explained

A reader asks, "what are these hedge funds I read about in the news? It seems like the managers make millions, hundreds of millions or even billions."

A hedge fund is simply an agreement between a manager and investors. It can take several legal forms such as limited partnerships (perhaps the most common) or limited liability corporation.

The term hedge fund is really a generic description for the arrangement. There is no formal structure they all must follow.

View the original article here

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