what is a hedge fund infographic
DESCRIPTION
Hedge Fund Fundamentals' first educational infographic provides an easy-to-read and accessible way to learn basics about hedge funds. Not only will users learn about industry assets under management, when hedge funds were created, and how they assist institutional investors meet their financial obligations, but the infographic also offers graphic representations of various aspects of the industry and its benefits to investors. Learn more about the global hedge fund industry at: www.hedgefundfundamentals.com.TRANSCRIPT
WHO INVESTS?Hedge funds are a direct partnership formed between the fund manager and his/her investors. Typically hedge fund managers invest a significant amount of personal capital, aligning their interests with their investors.
The roots of the modern day hedge fund industry date back to 1949 when a man by the name of Alfred Winslow Jones began employing an investment strategy that offset long equities positions with short positions in order to better manage risk. This balanced approach now defines today’s hedge fund industry.
WHAT IS THEIR PURPOSE?
WHO BENEFITS?These investments benefit local communities and residents in ways that are not always explained or well-understood. Institutions partner with hedge funds to:
WHAT IS A HEDGE FUND?
PUBLIC AND CORPORATE PENSION PLANS
UNIVERSITY ENDOWMENTS
CHARITABLE FOUNDATIONS
HIGH NET WORTH INDIVIDUALS AND FAMILY OFFICES
HEDGE FUNDfundamentals
Portfolio diversification helps
Provide hedge funds with stable returns over time
Retirees–fund retiree benefits and ensure retirement security
for millions of U.S. and global pensioners
Colleges and Universities– to help fund investments that
provide scholarships and research funding and operating income
for the university
Communities–because hedge fund investments help fund the work of
national and community foundations and non-profit organizations
PORTFOLIO DIVERSIFICATION
RISK MANAGEMENT
OPPORTUNITIES FOR ASSET GROWTH
Hedge funds invest in a range of assets, including common stock, bonds, commodities, futures and other vehicles.
Hedge funds employ a wide range of investment and trading activities to maximize return while minimizing risk.
Prevent over-concentration in specific assets
Protect investments from market volatility
There are nearly 10,000 active hedge funds globally. Hedge funds manage more than $2.63 Trillion in assets. There are many unique investment strategies common among the various hedge funds active in the U.S., for example:
Managed Futures
Global Macro
Quantitative funds
Equity Funds
Relative Value
1949
66% OF GLOBAL HEDGE FUNDS ASSETS COME FROM PENSIONS, COLLEGES, NON-PROFITS AND OTHER INSTITUTIONAL INVESTORS. Preqin
Source: HedgeFund Research
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