Hedge funds are a boutique segment of the investing world, usually marketed to large institutions and wealthy individuals (not to the general public). As the name implies, many of these funds combine a somewhat more risky overall strategy, operated by highly professional traders, with a relatively safer “hedge.” Together, these two balancing strategies seek overall returns exceeding more conventional investments with less susceptibility to losses during periods of higher volatility. Worldwide, hedge funds manage roughly USD$3.2 trillion in assets.
Hedge funds typically charge a management fee of around 2 percent, and a performance fee (a take on profits) of around 20 percent. These fees
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