Tuesday, January 23rd 2018

Question

Compare hedge fund vs private equity?

Interesting Question?   (8)   (6)



Answers (1)

12th Nov 2009 by Daniel Cross, ChFC

Hedge Funds are private investment companies that are structured as Limited Partnerships. The general partner is the Hedge Fund manager while the limited partners would be investors. In order to invest in a Hedge Fund, the potential partner must qualify as a high net worth individual - someone that has earned over $200,000 over the past 2 years with a reasonable assumption that it will continue or a net worth of at least $750,000.00. The manager pools together everyone's money and trades various products ranging from stocks to bonds to derivatives. It is currently a lightly regulated industry that allows the Hedge Fund manager a lot of freedom but comes with the price of not being allowed to advertise or market the Fund to anyone other than the aforementioned qualified investors.

Private Equity companies invest primarily in companies that are not publicly traded. They profit based on a
companies underlying company and are known for restructuring and streamlining them for maximum efficiency. They are open to any investors as they do not have the type of restrictions Hedge Funds have, although if they begin to trade stocks, they must reorganize as such.

Like This Answer?   (1)   (0)
This answer is the subjective opinion of the writer and not of FinancialAdvisory.com



9th Nov 2009 In Finance 1 Answers | 1180 Views
Subjects: hedge funds, private equity,

Answer This Question / Give Your Opinion
Compare hedge fund vs private equity?


Answer: *

What country is this answer relevent to? *
Your Name: *

Enter Verification Number: *


Give Your Opinion
What are the different types of HSBC USA credit cards?
Share a simple answer to help inform others:
Specific to any country?
First name / Alias

• Your answer will be posted here:
What are the different types of HSBC USA credit cards?
Unanswered Questions in Finance
What is a high risk borrower?
What is a wholesale loan?
Who can cosign a loan?
How to finance a mortgage?
What is capital financing?

Answered Questions in Finance
What is commercial lending?
What is a senior loan?
Who regulates credit card companies?
What are the advantages of financial leverage?
Whats the difference between visa and mastercard?
Ask A Question
Get opinions on what you want to know:
Specific to any country?