Hedge fund. Definition of a hedge fund.
Posted by
awiopian at Wednesday, April 16, 2008
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What is a hedge fund?
A hedge fund does not exist as far as the Federal Securities and Exchange Commission is concerned. There is, in all actuality, no such thing as a hedge fund. But, hedge funds do exist, so the question is: how and what are they? In short, hedge funds a groups of stocks, bonds and securities that are managed by a portfolio manage for the intense purpose of returning profit and maintain investment, regardless of market conditions.
This is why the Securities and Exchange Commission cannot recognize hedge funds. They guarantee a return and as every investor knows there is no such thing as a sure thing. And, in truth, hedge funds are not a sure thing. Interestingly, hedge funds are also not the boldest investment schemes available on the market. In fact they are the opposite of all that. Instead, slow and steady winds the race, might aptly be the motto of every hedge fund known to man. Hedge funds choose the safer courses and less riskier and even lucrative investment. Instead, hedge funds are in place to protect fortunes from the storms and tirades of the market.
The leader of the hedge fund, for usually hedge funds are made up of groups of rather wealthy investors and therefore their must be one voice to choose the courses and strategies of the hedge fund, is called a portfolio manager. It is he, the portfolio manager, who will decide what investing options to pursue as he maintains an eye towards solid profit growth and steady income return gain.
Hedge Funds are solid, safe investing strategies for large, wealthy, sophisticated clients to maintain their fortunes.