ENG ELC 220 Lecture Notes - Lecture 6: Toshiyori, Systematic Risk, Data Mining
1 Nov 2020
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Document Summary
Essentials of investment chapter 20 hedge funds terms and quick overview. Hedge fund a private investment pool, open to wealthy or institutional investors, that is largely exempt from. Sec regulation and therefore can pursue more speculative policies than mutual funds. Transparency hedge funds are set up as limited liability partnerships and provide minimal information about portfolio composition and strategy to their investors. Investors hfs have usually no more than 100 sophisticated investors, defined by minimum net worth and income. Investment strategies hedge funds by design are empowered to invest in a wide range of investments and do not necessarily face the pressure of style drift. Lock-up period period in which investors cannot redeem investments in the hedge fund. Many hedge funds also employ redemption notices requiring investors to provide notice weeks or months in advance of their desire to redeem funds. Compensation structure hedge funds employ besides management fees also heavy incentive fees often.
