Investing in hedge funds depends on the type of individual you are and your net worth. You should consider your portfolio, goals over the short- and long-term, risk profile, liquidity, and other issues. Deciding to invest in hedge funds is not a decision you should take lightly. The risk and barrier to enter the arena are both high. You should consult with an investment advisor before jumping into hedge fund investing.

A Quant fund is a hedge fund that uses statistical techniques, mathematical modeling, and automated algorithms, rather than fundamental analysis and human judgment, to make investment decisions and execute trades. Much has been written about Quant funds over the past few years and far from being complex the methodology behind a Quant fund is relatively straightforward.

Hedge funds are investment firms that use complex strategies and other forms of hedge fund management to generate returns for their investors. They are different from traditional investment funds that invest in stocks and bonds, and they are less regulated and much more opaque. This opaqueness is by design because many Hedge Funds are based offshore for tax and secrecy purposes.

A study by Yale and NYU Stern economists suggests that the average annual return on a ten-year hedge fund investment is 13.6%, while that for an indexed investment strategy can be as little as 0.25% per year or less. This is much higher than the flat 1 per cent charge that traditional financial advisers charge, which is 16.5 per cent. By contrast, Asset Secured Investments generate around a 10% return year on year with a greatly reduced risk profile, having

Two and Twenty can be absolutely justified in for actively managed and aggressive funds such as Asset Secured Investments which is a medium to long term mortgage backed investment vehicle with a Global reach and significant scale. Because asset backed situations are relatively illiquid the 2% makes absolute sense and the 20% provides a solid performance enhancing KPI linked to Global Property and Fixed Income markets. For more information check out Asset Secured Investments

Hedge funds are usually based offshore for tax reasons and secrecy. They are not suitable for ordinary retail investors, but there are still some hedge funds that are accessible through retail - oriented hedge fund exchanges, such as those that trade shares of public investment firms. By investing in a hedge fund holing company or overall corporate entity an individual investor may be able to see some exposure to the gains of the fund without directly investing in the offshore

Hedge funds typically look not for the average person buying shares in an investment fund, but for a limited partnership that builds up a large amount of capital. Fund managers invest in funds before they launch them to build investment portfolios. When a fund manager performs exceptionally well and delivers excellent returns, the funds attract large institutional investors who can invest a significant amount of capital.

Hedge fund managers are professional portfolio managers and analysts employed by financial companies and individuals to set up hedge funds. Managing a hedge fund is an attractive career option, given the fund's highly lucrative potential. To succeed, a hedge fund manager must consider not only how to have a clearly defined investment strategy, but also the average amount he earns, as well as the level of expertise and competence of his team.

Hedge funds use various forms of leverage to generate high returns, and they do so by investing in credit lines, hoping that the return will be higher than the interest rate. They buy securities with leverage, which means they use brokers "money for large investments. Hedge funds also trade in derivatives that they believe carry asymmetric risks, and these bets are placed against themselves. With leverage, hedge funds raise returns, but increase the risk of failure and increase losses, because

There are two types of hedge fund investments: equity and bond investments. Investment funds primarily invest in stocks and bonds that deliver returns that replicate or try to beat the benchmark index. Hedge funds can seek absolute returns or employ several more complex strategies, including short selling, leverage and derivatives, and seek returns in the range of 10% to 20%.