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A Capital Guide to Funds of Funds

Funds of hedge funds (FOFs) have become popular investment vehicles for institutional investors and wealthy individuals alike who want exposure to hedge funds but lack the necessary platforms or resources to understand complicated hedge fund strategies, conduct thorough due diligence, perform meaningful risk management, and other operational and administrative activities. These additional skills provided by FOFs seemingly justify an additional layer of fees on top of the fees already charged by underlying hedge fund managers that includes management fees ranging ...

What are Hedge Funds?

A U.S. “hedge fund” usually is a U.S. private investment partnership invested primarily in publicly traded securities or financial derivatives. Because they are private investment partnerships, the SEC limits U.S. hedge funds to 99 investors, at least 65 of whom must be “accredited.” (“Accredited” investors often are defined as investors having a net worth of at least $1 million.) The General Partner of the fund usually receives 20% of the profits, in addition to a fixed management fee, usually 1% ...

Hedge Funds Bullish on Cambodia in 2024: Opportunities and Challenges

In 2024, Cambodia is emerging as an unexpected but promising frontier for boutique hedge funds seeking high returns in Southeast Asia. With a burgeoning economy, favorable investment climate, and strategic location, Cambodia offers unique opportunities that are attracting niche financial players. However, investing in the Kingdom is not without its challenges. This article delves into the reasons behind the growing interest of boutique hedge funds in Cambodia, the opportunities they see, and the potential obstacles they must navigate. Opportunities Driving ...

NUMBER OF HEDGE FUNDS INCREASES FOR TENTH CONSECUTIVE YEAR Growth Rate Slows, But Still Steady

NASHVILLE, TN, USA, September 21, 1999. – The hedge fund universe expanded for the tenth straight year in 1998, with an estimated 330 new funds created, George P. Van, chairman of Van Hedge Fund Advisors International (VAN), a leading hedge fund investment advisory firm reported today. “In 1998, we estimate that over 300 new hedge funds were formed, bringing the total number of funds to 5,830 worldwide,” said Van. “While this is still a healthy number of new funds, it ...

Large Dollar Inflow Stresses Industry

The worldwide demand for hedge funds has reached unprecedented levels and is beginning to stress the industry, according to George P. Van, Chairman of Van Hedge Fund Advisors International, Inc. (VAN) a leading hedge fund investment advisory firm. “Notwithstanding new hedge funds continuing to spring up like mushrooms after a hard rain”, noted Mr. Van, “the unprecedented growth in demand in the most recent twelve months is outstripping the increase in supply”. Mr. Van noted that this surging demand for ...

NUMBER OF HEDGE FUNDS INCREASES FOR TENTH CONSECUTIVE YEAR

Growth Rate Slows, But Still Steady The hedge fund universe expanded for the tenth straight year in 1998, with an estimated 330 new funds created, George P. Van, chairman of Van Hedge Fund Advisors International (VAN), a leading hedge fund investment advisory firm reported today. “In 1998, we estimate that over 300 new hedge funds were formed, bringing the total number of funds to 5,830 worldwide,” said Van. “While this is still a healthy number of new funds, it does ...

Short Sellers Shine in April

Overall Hedge Fund Performance Strong for Month, Year to Date Hedge funds by and large performed well in April’s rough and tumble markets. The Average U.S. Hedge Fund outperformed most of the major indices with a –2.4% drop, while the Average Offshore Hedge Fund fell only -3.3%. Overall, both the Average U.S. and Offshore Hedge Fund Indices remain positive for the year, with the average U.S. fund posting a 7.5% net gain and the average offshore fund showing a net ...

Hedging for Dollars

In a world of sluggish securities investment options, hedge funds may provide substantial returns. But beware the volatility factor and hefty management fees. A senior telecommunications executive sold his company four years ago for seven figures. He socked away most of the proceeds into a traditional stock and bond portfolio but about a year ago, put some of his gains into an aggressive hedge fund specializing in the media industry, which chalked up a one-year gain of 35 percent. The ...