Little wonder most successful hedge fund managers place limit on the amount of capital they will accept per time.
Hedge funds is simply an investment medium that enables big time accredited investors or well established institutions pool cash or capital together to be able to invest in securities and any other form of investment opportunity that requires large initial capital to invest in.
Hedge Funds Investment is not open for all and sundry basically because it requires large capital to invest in it.
The amount required to invest in hedge funds could range from 1 Million US Dollars to even multiple Millions of Dollars.
The fact that hedge funds requires large capital makes it easier for only the rich and accredited investors to cash in on it. In the United States of America, the hedge fund industry is estimated to be a $1.2 trillion industry with approximately 9,000 active hedge funds and funds of funds.
Business Plan For Investment Company
Hedge funds are only open to limited partners with the required cash for investing in capital intensive business portfolios. Jones, which is a partnership with four friends, and through this investment vehicle, they were able to invest one hundred thousand U. Statistics has it that in December 2009, the largest – top 25 hedge fund managers had an estimate of 0 billion in assets under management.Hence the stiffer competition in the hedge fund industry amongst those seeking for job openings in the industry.Saying that Hedge funds investment is a risky venture is just stating the obvious because hedge funds aren’t regulated by the government or any financial regulatory body because it is limited to friends, business partners and families and not open to the general public.The risk involved in hedge funds is what makes it open to only few accredited investors.Here below is a sample hedge fund business plan; Hedge funds is simply an investment medium that enables big time accredited investors or well established institutions pool cash or capital together to be able to invest in securities and any other form of investment opportunity that requires large initial capital to invest in. The bottom line is that, they were able to generate 17.3 percent returns during the first year of investment and that was enough to set the ball rolling for hedge fund investment et al.On the average, hedge fund firms charges between 1 percent and 2 percent of assets under their management annually and the performance fees is about 20% of gross profits returned by the fund which is usually based on certain constraints.There are several hedge fund firms in the United States of America but that does not in any way place a cap on the industry.The income you generate is based on your performance which is why most hedge fund managers employ different investment strategies to generate good returns for their clients.In other words, the performance fee is indeed the defining characteristic of a hedge fund. If YES, here is a complete sample hedge fund business plan template & feasibility study you can use for FREE.Okay, so we have considered all the requirements for starting a hedge fund business.