|
Hedge Funds
Hedge Fund in comparison to
Private Equity Funds
 |
No Load Mutual Funds
Earn Big Returns On Your Investment Using A
Well-Known, But Little-Understood No-Load Mutual Fund Strategy.
|
Hedge
funds are seen to be similar to private equity funds like venture capital
funds, in several respects. One of these similarities is that both are
lightly regulated private pools of capital which invest in securities and
pay their managers a share of the fund's profits. Most hedge funds invest
in very liquid financial assets thereby permitting investors to enter or
leave the fund with equal ease. It has been seen that private equity funds
invest primarily in very illiquid assets like early stage companies and
due to this, investors tend to be locked in for the entire term of the
fund.
Studies show that hedge
funds often tend to invest in private equity companies' acquisition funds.
Furthermore, between 2004 and February 2006, it has been noticed that some
of the United States hedge funds adopted over 25 month lock-up rules with
the sole intention of exempting themselves from the SEC's new registration
requirements. They hence now fall under the category of registration
exemption that had been drafted to exempt private equity funds.
|