# data[].attributes.body
I mainly use Khan Academy to help me study for my academics but surprisingly enough, this well known site also breaks down what are hedge funds and how it is all run. The commentator provides a quick and informative session with an accurate run through of the basics of the outcome of this type of business.

# data[].attributes.attachment_link.title
Hedge funds intro | Finance & Capital Markets | Khan Academy

# data[].attributes.body
Patrick McCurdy, head of capital introduction at Wells Fargo Prime Services is featured on Bloomberg for a brief interview related to hedge fund start ups and the progress that an average investor will experience. Even though hedge funds don't account for a huge portion of investments an accredited investor can start up a fund from as little as $15,000 to upwards of $300,000.

# data[].attributes.attachment_link.title
How Much Money Does a Hedge Fund Startup Need?

# data[].attributes.body
This picture shows the route of how a hedge fund interacts with an investor and the current market. It also provides a good basis for the "2 and 20 rule".

# data[].attributes.body
A valid question the average investor may ask is how hedge funds make money? In simplest terms a fund manager takes a pool of investors money and begins to secure their holdings into stocks, bonds, etc, and possibly creating a large and varied profit pool of every investors input. One underling rule that was mentioned in the video was the "2 and 20 rule" where the manager charges 2% of funds and then 20% of profits.

# data[].attributes.attachment_link.title
How Hedge Funds Make Money | Investment Toolkit

# data[].attributes.body
Hedge funds are increasingly becoming more popular for big time investment, since a new investment tactic and option has been introduced over the past few years. Aside from stocks, cryptocurrency like Bitcoin has taken the reigns for ideal hedge fun opportunities. This option has seen huge success and is predominantly appealing since the entirety of Bitcoin is essentially its own market. Void of taxes, hedge fund managers have more room for profits and provides much easier organization compared to traditional investments.

# data[].attributes.attachment_link.readable_text
More than 90 funds focused on digital assets like bitcoin have launched this year, bringing the total number of such "crypto-funds" to 124, according to financial research firm Autonomous Next.

Data shared exclusively with CNBC Friday showed that the largest share of the funds, 37 percent, used venture capitalist-type strategies and had about $1.1 billion in assets under management. Funds focused on trading digital assets came second at 32 percent, with about $700 million in assets under management.

Funds specifically using machine learning, data science or statistical arbitrage on digital currencies came in third at 10 percent and $100 million in assets under management, the data showed.

Total assets under management by crypto-funds now stands at $2.3 billion, according to Autonomous Next's estimates.
Source: Autonomous Next
This year's surge in the price of bitcoin and another digital currency, ethereum, have drawn attention to the cryptocurrencies and the potential of their blockchain technology. Proponents say blockchain could transform the world as much as the internet did, and several major banks are researching or developing blockchain projects.

Digital currency enthusiasts also attribute much of the latest surge in bitcoin to record highs above $6,100 to increased interest from institutional investors. While several leading Wall Street banking executives remain skeptical about bitcoin, more seasoned money managers are moving into digital assets management.

Notably, former Fortress hedge fund manager Michael Novogratz is launching a $500 million digital assets fund through his new firm, Galaxy Investment Partners. The fund is expected to be the largest of its kind.

# data[].attributes.attachment_link.title
There are now more than 120 hedge funds focused solely on bitcoin, digital currencies

# data[].attributes.attachment_link.description
More than 90 funds focused on digital assets like bitcoin have launched this year, bringing the total number of such "crypto-funds" to 124, according to financial research firm Autonomous Next. Data shared exclusively with CNBC Friday showed that the largest share of the funds, 37 percent, used venture capitalist-type strategies and had about $1.1 billion in assets under management.

# data[].attributes.body
Every part of how a hedge fund equally relies on every other part. Without a solid proposal and fund plan a manger cannot introduce new accredited investor within the system.

# data[].attributes.body
This picture below provides an outstanding fact sheet about hedge funds and everything it has to do with he public and the market.

# data[].attributes.body
Just like any other form of investment tactics, a hedge fund doesn't guarantee the success of an investors profit. A few things that new investors should be aware of, is that funds will be charged in accordance with what the manager seeks and that the average time funds stay circulated is 3-4 years.

# data[].attributes.attachment_link.readable_text
Hedge funds pool investors' money and invest those funds in financial instruments to make a positive return. Many hedge funds look at all sorts of possibilities in all types of markets. Hedge funds can be very speculative in their investment options. Many of these options include a very high level of leveraging that can increase both returns and exposure to loss.

Hedge funds are not required to register with the Securities and Exchange Commission. Hedge funds typically issue securities in "private offerings" that are not registered with the SEC. Also, hedge funds are not required to make periodic reports to the Securities and Exchange Commission. Hedge funds are subject to the same rules prohibiting fraud, and their managers have the same fiduciary duties as other investment advisers.
What do I need to know before investing in a hedge fund?
Carefully read a fund's prospectus, offering information and marketing materials. Make sure you understand the level of risk involved in the fund's investment strategies and ensure that they are suitable to your personal investing goals, time horizons, and risk tolerance. Hedge funds can return higher yields than mutual funds, but they can also expose the investor to higher risks.

Limitations on your right to redeem shares may cause the value to destabilize.Most hedge funds will limit opportunities to redeem, or cash in, your shares. Most hedge funds will allow redemption 3-4 times a year. Also, some hedge funds will require that a percentage of your funds be unavailable for a selected time period, such as one year or longer.
Understand how a fund's assets are valued.

Funds of hedge funds and hedge funds may invest in highly illiquid securities that may be difficult to value. Many hedge funds give themselves significant discretion in valuing securities. Understand how the assets are valued and make certain that you understand the formula for liquidating your investment.
Understand fee structure.
Fees can impact your return on investment. A hedge fund typically charges an asset management fee of 1-2% of assets, plus a bonus of a percentage of the yield. These "performance" options can be very high and can offset your expected returns. A very high-performance fee may cause the manager to take a risk that can lead to exposure to loss.
Limitations on your right to redeem shares may cause the value to destabilize.

Most hedge funds will limit opportunities to redeem, or cash in, your shares. Most hedge funds will allow redemption 3-4 times a year. Also, some hedge funds will require that a percentage of your funds be unavailable for a selected time period, such as one year or longer.
Understand the ability and background of the hedge fund managers.

Complete due diligence is vital in selecting the correct hedge fund for investment.
Am I protected and are my funds guaranteed?
Hedge fund investors do not receive all of the federal and state law protections that commonly apply to most registered investments. Most hedge funds will not disclose all exposure potential and are not required to do so by the SEC. The SEC may investigate the background of hedge fund managers, but it is not a requirement before joining a hedge fund. In the event of fraud, the SEC may investigate and may become involved in fraud research for civil issues and department issues. Unlike insurance products and bank deposits, your funds are not guaranteed.

# data[].attributes.attachment_link.description
Hedge funds pool investors' money and invest those funds in financial instruments to make a positive return. Many hedge funds look at all sorts of possibilities in all types of markets. Hedge funds can be very speculative in their investment options. Many of these options include a very

# data[].attributes.body
Over the past 6 years the stock market has been getting more volatile, making overall profits and dividends increasing for both investors and the fund managers. At the same time, 69 percent of active managers overall beat their benchmarks, the best performance in six years. A good example of the rise in volatility is the huge wave of THC company endorsement making stocks rise any where from 80% to 300% in just several weeks.

# data[].attributes.attachment_link.readable_text
Volatility is generally seen as a plus for stock picking as it provides better opportunities for active managers to find price discrepancies. Low-vol environments usually correspond with high correlations in that most stocks move up and down together.

Indeed, active managers as a whole saw a stellar January as compared with historical norms.

Large-cap managers beat their benchmarks at a 69 percent pace, with the average outperformance at 0.53 percentage points. That was the best month in six years and the second-best overall since Bank of America Merrill Lynch started tracking beat rates in 2009.

"Sector positioning was likely a big driver of performance: funds' two most overweighted sectors (Tech and Discretionary) were the best-performing sectors in January, and their four most underweighted sectors (Staples, Telecom, Real Estate and Utilities) posted the worst performance, as rising rates pressured high dividend yield," Savita Subramanian, BofAML equity and quant strategist, said in a recent report for clients.

Subramanian also pointed out that correlations had reached a 17-year low, contributing to performance, while companies with the most positive earnings revisions also performed well.

For hedge funds in particular, macro strategies, which focus on economic and political themes, posted the best January return at 3.7 percent. Equity-focused also turned in a solid performance with a 3 percent gain.

After seeing enormous gains in 2017, funds focused on digital currencies and the technology behind them faltered in January as prices plunged.

The HFR Blockchain Composite Index was off 9.22 percent for the month after gaining 2,798 percent in 2017, while the HFR Cryptocurrency Index fell by the same level after surging 2,922 percent in the previous year.

# data[].attributes.attachment_link.title
Hedge funds post best start in 12 years as stock pickers take advantage of volatility

# data[].attributes.attachment_link.description
Volatility is generally seen as a plus for stock picking as it provides better opportunities for active managers to find price discrepancies. Low-vol environments usually correspond with high correlations in that most stocks move up and down together.