Hedge Fund Manager

Hedge Fund Manager is the person who is responsible for all sorts of investment decisions of a concerned hedge fund. He uses all sorts of strategies and techniques for profit maximization from any sort of available opportunity. Hedge Fund Manager is always in search of investment opportunities not only in the domestic sphere but also in other parts of the world. The hedge funds that invest only in the United States Of America are known as Domestic Hedge Funds but the ones that prowl in the whole world for investing in the most opportune market and moment are called Offshore Hedge Funds.

A Hedge Fund Manager is a well educated person in the field of finance. Not only this, they have many years of experience in this field and have the most expertise tools with them for fund management.

Hedge Fund Manager works for a privately run partnership firm which is essentially an unregistered entity. In this set up the manager is a general partner. Hedge Fund Manager has all the responsibilities of taking all the decisions related to investment of the pooled money.

The most significant aspect related to a Hedge Fund Manager is that he offers a specific rate of return within a specific time period. This assurance of sum of money may also be in absolute terms. In order to materialize the assured sum, a Hedge Fund Manager emphasize on two basic aspects :-

• They utilize all the latest strategies and tools known in the fund management domain like leveraging, arbitraging and hedging along with all the tools like short selling, investing through a wide array of derivative products like futures, options, swaps, warrants, etc. Hedge Fund Manager is able to use all these tools which are generally not permitted for any other domestic fund management entities like Mutual Funds.
• Hedge Fund Manager don’t allow its investors to withdraw their money at any time they want. The investors are required to lock in their money with the hedge fund for at least a year.

A Hedge Fund Manager always use a wide range of asset types for their investment portfolio. These assets include equity, derivatives, commodities, fixed income types, bonds, currencies, etc.

Hedge Fund Manager manages the funds for the high end investors including the Accredited Investors and the Qualified Purchasers. The minimum amount that a fund manager accepts from an investor for investing hovers between US$ 250,000 and US$ 500,000. It has also been seen that some of the very renowned Hedge Fund Manager asking for a minimum investment of US $ 10,000,000.