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Printable Guides: Prospect Research 101 (pdf) | Prospect Profile Template (doc) |
Hedge funds are privately offered investments that use a number of nontraditional investment methodologies in an attempt to earn absolute returns. These funds are established as limited liability companies with a manager and a small number of investors, rarely topping 500. Hedge funds require a very large minimum investment, usually at least $1 million, so they attract a very select group of people.
In addition, hedge funds are notoriously private and difficult to track; and therefore are very hard to research. Since these funds are private investment funds only open to a limited number of accredited investors, they are not required by the SEC and other regulatory agencies to disclose information regarding their holdings, performance, executives, or other financial data.
For more information about hedge funds, see the following: