Largest Hedge Funds

The hedge funds are a portfolio of investments that use certain investment strategies to generate high returns. Some of the largest hedge funds use long-short investment strategies, such as leveraged and derivative positions in both the international, and the domestic market. Through these strategies the funds invest in both long positions, such as buying stocks, and short positions, like selling shares with money taken as a loan.

These hedge funds are set up to be private investment partnerships which are available to a restricted number of investors. These investments cannot be easily converted into cash because they often require for investors to keep their money within the fund for almost a year.

Unlike other funds, the hedge funds are not regulated, mostly because of their sophisticated investors. The investors must have a net of a value more than a million dollars. So, we can easily note that the hedging is, in reality, the practice of attempting to lower the risk. The prime goal of the largest hedge funds is to increase return on investment.

The popularity of these hedge funds, which are also called alternative investment vehicles, has been growing stronger and then weaker again over the years. They have increased rapidly with the market boom that happened earlier this decade, but with the credit crises around 2008, many of the hedge funds closed. Despite all of the challenges these funds face, they continue to offer investors a valid alternative to other  conventional investment funds by offering higher returns. And that is why, it is safe to say that they are here to stay.