It’s important to join a hedge fund with an investment strategy that fit you in order to have longevity in this career. Today we’ll go over the most popular hedge fund strategies. Let’s start with an overview of the hedge fund industry.
Hedge funds are private investment vehicles aimed to generate positive absolute returns for institutional clients and high-net-worth individuals.
Hedge funds are usually structured as partnerships. Portfolio managers are typically general partners of the fund with investment decision-making responsibilities. They hire research analysts to cover existing and potential investments, who are typically aligned by asset class (for example, debt vs. equity), industry (financials vs. consumer), and geography (emerging markets vs. U.S.).
The hedge fund industry has grown substantially over the past 2 decades and can no longer be considered a homogeneous asset class. There are estimated 9,000 hedge funds in the U.S. today with $2 trillion in assets under management.