What is a hedge fund?

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Old Nov 16, 2004, 9:42pm   #1
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What is a hedge fund?

I know you guys are just going to say search the net, but I have. Got a rough idea, would just like a few people to clarify what I've read.

Any definitions and/or how they work and are structured would be nice.

Cheers,
Steven.
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Old Nov 16, 2004, 10:13pm   #2
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A charity for planting habitats for insects? :>
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Old Nov 16, 2004, 10:31pm   #3
 
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Quote:
know you guys are just going to say search the net......
Well, it can get results.....

see this hedge fund definition for a good insight into how they work......
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Last edited by tradesmart; Nov 17, 2004 at 1:38am. Reason: cant spel....
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Old Nov 16, 2004, 10:33pm   #4
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From UBS Warburg Oct 2000 research "In search of Alpha" by Alexander M Ineichen CFA

"Hedge funds are private partnerships wherein the manager or general partner
has a significant personal stake in the fund and is free to operate in a variety of
markets and to utilise investments and strategies with variable long/short
exposures and degrees of leverage."
- Crerend 1995

Beyond the basic characteristics embodied in this definition, hedge funds
commonly share a variety of other structural traits. They are typically organised as
limited partnerships or limited liability companies. They are often domiciled off
shore, for tax and regulatory reasons. And, unlike traditional funds, they are not
burdened by regulation.
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Old Nov 16, 2004, 10:34pm   #5
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soosta started this thread
Quote:
Originally Posted by tradesmart
Well, it can get results.....

see this hedge fund defininition for a good insight into how they work......
Thanks for that.
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Old Nov 16, 2004, 10:36pm   #6
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soosta started this thread
Quote:
Originally Posted by Achilles
From UBS Warburg Oct 2000 research "In search of Alpha" by Alexander M Ineichen CFA

"Hedge funds are private partnerships wherein the manager or general partner
has a significant personal stake in the fund and is free to operate in a variety of
markets and to utilise investments and strategies with variable long/short
exposures and degrees of leverage."
- Crerend 1995

Beyond the basic characteristics embodied in this definition, hedge funds
commonly share a variety of other structural traits. They are typically organised as
limited partnerships or limited liability companies. They are often domiciled off
shore, for tax and regulatory reasons. And, unlike traditional funds, they are not
burdened by regulation.
Thanks.

Reason being I saw an advert for a job within a hedge fund, basic entry-level kind of stuff. But hey we all have to start somewhere!
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Old Nov 16, 2004, 10:36pm   #7
 
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It's basically a fund that can take long and short positions in the market, theres a complete definition here.

http://www.magnum.com/hedgefunds/abouthedgefunds.asp
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Old Nov 16, 2004, 10:41pm   #8
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Reason being I saw an advert for a job within a hedge fund, basic entry-level kind of stuff.
Where was this advertised?
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Old Nov 17, 2004, 5:14pm   #9
 
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Quote:
Originally Posted by Achilles
Where was this advertised?
Do your own search!!!!
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Old Nov 17, 2004, 5:43pm   #10
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I'm not interested in the exact place just a general idea because the level of prior knowledge soosta would be expected to know can be more appropriately determined. An advert for this position on hedge fund industry website is much different in my opinion to an advert in a jobcentre for example.
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Old Nov 17, 2004, 8:31pm   #11
 
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A few other points worthy of note in case not covered in earlier links/references:

The description generally fits any managed fund whose constitution is designed specifically to avoid the detailed regulatory oversight typically accorded to mass-market products like standard Unit trusts/mutual funds for so-called 'investor-protection. They therefore do not fall foul of all those tedious rules about how to illustrate performance; warnings about 'can go down as well as up'; etc. Therefore, for subscription/membership purposes, they tend not to register in the conciousness of Jo public at all since to promote them in typical mass-market fashion is all but impossible - they're seen as MYSTERIOUS !!! - In other words, Caveat emptor applies in spades, but pick the right one and you'll likely be a lot happier than the average UT investor.
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Old Nov 23, 2004, 10:03pm   #12
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soosta started this thread Thanks for that guys!

In response to whoever asked where I saw the advert it was in the Evening Standard, last Tuesday. It read "Traders Assistant, required for small hedge fund". It also specified it was looking for graduates but I rang up and asked if was was a definite necessity as I am not and I was told it wasn't but to email my CV anyway. I did and was never contacted!

I really do not know what I am doing wrong! I manged to reach the second stage of interviews for a trading firm after passing all English and Math tests for a similar position and was never contacted. And i never even got a look in for this one! I was chatting to a guy in my friends pub the other day and he was telling me he was a successful trader for 20 years. I asked him how he got into the position and he told me he started from scratch at the age of 17 as a tea boy!

I have written SO many letters to many companies but have never recieved a reply. Only luck I have had is to reply to adverts, but then has really got me nowhere.


Does anyone have any advice for me? I am considering doing a degree next September, do you guys think this is the best way to go about it!? Anyone know where I can get a list of hedge funds as the guy I spoke to said this would be my best bet at the moment.

Thanks in advance and sorry about the rant!!
Steve.
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Old Nov 26, 2004, 1:24pm   #13
 
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You really need a degree if you want to be a trader these days , long gone are the days of tea boy makes trader i'm afraid.
If you're clever do something like maths, or a computer based subject , then try to get into a firm .
Good luck .
I did a degree in computing A-levels in Physics as i wanted to be a jet pilot for as long as i remember.
My eyes went tits up , so ended up starting up a hedge fund and now i work as a hedge fund consultant.
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