Hedge Funds

Initially sold  only to wealthy individuals, increasingly hedge funds  are now being sought out by large institutions and the smaller investor. Hedge funds now often account for more than half the daily volume on the New York Stock Exchange and have an equally large presence in every other financial market.  Hedge funds have some common characteristics. Like mutual funds, they are usually pooled investments; it is also common to have an initial lock-in for between four and five years. This allows a hedge fund to take positions in the most illiquid corners of the market including options, futures, derivatives and unusually structured securities. Investors value this ability to embrace opportunities, magnify returns through leverage and take difficult positions because of a stable base of assets. Hedge Funds are becoming an intrinsic addition  to most investors portfolios, though careful selection with the assistance of an experienced advisor is critical.