Hedge Funds

Hedge Funds are a complex investment product but they are effectively an all-encompassing term for a range of different investment strategies with varying levels of risk attached to each one.

There are a few things to know before considering investing in a Hedge Fund. Firstly, the initial investment required is often far higher than any other investment product on the market. Hedge Fund companies will typically demand an investment of £50,000 at least with some requiring up to £1 million or more to get the ball rolling.

Secondly, annual management fees are usually in the region of two per cent. This is not unheard of for investment funds but given the sizeable amount of capital involved this can be a lot of money.

Hedge Funds also impose performance fees of up to 20 per cent on any return, something that you don't commonly see with investment products and is aimed at motivating investors and fund managers alike. Given the high risk nature of Hedge Funds it is vitally important to think long and hard before investing and seek professional financial advice.

Related Articles

17 per cent of British workers will struggle financially before payday arrives

17% of people run out of funds 3 weeks into the month

Some 17 per cent of British workers will struggle to pay for daily spending after the three-week mark in a month, according to new research

Porsche drives losses at hedge funds over VW bet

Hedge funds lose £12.6bn on bad VW bets

Hedge funds are set to face billions of pounds of losses after bets on the falling price of Volkswagen turned massively against them.

Hedge funds face massive stress

RAB Capital closes funds as hedge funds face "severe stress"

Hedge fund manger RAB Capital is to close several of its funds as assets under management fell by $4.3 billion in a year.

It was an excellent first quarter for fund-of-hedge-funds

'Excellent first quarter' for funds of hedge funds

It was an excellent first three months of the year for investors in fund-of-hedge-fund products.

Retail investors could be about to gain access to the hedge fund market

FSA to take hedge funds mainstream

Normal investors could be about to gain access to hedge funds, under new proposals from the The Financial Services Authority (FSA).

See more related articles

Newsletter sign up


In addition to the weekly newsletter, which areas of finance would you like to hear from us about:

Tick this box if you would like us to send you promotions from carefully selected third parties.

By signing-up you agree to the terms of use and privacy policy.

sign-up button

Get the latest information on: