![]() ![]() You can review a hedge fund manager’s disciplinary history, fees and investment strategy by looking at their Form ADV. Hedge fund managers are motivated to be successful they get paid a performance fee-which can be up to 20% of the fund’s profits-if the fund is profitable.ĭue to the large role they play in managing your money, you want to make sure any hedge fund manager is qualified to handle your money. They choose how to distribute invested money and manage the fund’s level of risk. “Hedge funds can have their advantages-a chance at higher returns-and disadvantages, including illiquidity, volatility and risk.” What Is a Hedge Fund Manager?Ī hedge fund manager is an investment manager who makes daily investment decisions for a hedge fund. “Hedge funds are seen by some as an exclusive club that you have to qualify for,” says Katie Brewer, CFP and president of Your Richest Life. And, there may be some glamour associated with qualifying to invest in hedge funds. This tactic appeals to investors looking to continue to earn returns even in bear markets. Hedge funds take on these riskier strategies to produce returns regardless of market conditions. “Hedge funds are riskier investments because they are often placing bets on investments seeking outsized, shorter-term gains,” she says. Those strategies hedge funds use come with significant risk, says Sarah Catherine Gutierrez, a certified financial planner ( CFP) and CEO of Aptus Financial. They more often employ aggressive investment strategies, like leveraged, debt-based investing and short-selling, and they can purchase types of assets other funds can’t invest in, like real estate, art and currency. ![]() But hedge funds aren’t limited the same ways mutual funds are. If this sounds a lot like a mutual fund or exchange-traded fund ( ETF) to you, you’re not wrong. In such cases, historical data has been synthesised at the entire discretion of that external provider as realistically as possible using historical data recorded against the previously available commission-paying version of the fund, adjusting for fees in the process.INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT Ī hedge fund pools money from investors to buy securities or other types of investments. The charts and performance data shown are supplied by an external data provider and may contain data that appears to precede the introduction of the clean unit class for this fund. If this fund carries such a levy it should be detailed in the Key Investor Information Document (KIID), which we must provide and you should read before investing. ![]() Some funds carry a dilution levy which reduces the number of units realised on any initial investment as an initial charge. Without fully understanding how a fund is managed, you may inadvertently become exposed to an undesirable level of risk to your capital. Headline performance can mask the true characteristics of a fund. These are the illustrative values of a investment after growth and costs at the end of the defined period What you might get back at with charges applied What you might get back at with charges applied These are the overall costs in monetary value, based on an initial investment amount of assuming a growth rate These are the overall costs in percentage terms, based on an initial investment amount of assuming a growth rateĮffect of charges on return (£) Effect of charges on return (£) These are the annual costs based on an initial investment amount of assuming a net zero growth rateĮffect of charges on return (%) Effect of charges on return (%) These are the illustrative values of a investment after growth and no costs applied at the end of the defined period What you might get back at with no charges applied What you might get back at with no charges applied This illustration assumes that costs occur evenly throughout the year, charges are paid out of the investment evenly throughout the year, and that an annual growth rate of applies evenly throughout the year, before any charges including product charges lump sum invested with an assumed growth rate of Cumulative effect of charges on your investment's return ![]()
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