Hedge Funds

Hedge Funds are a complex investment product but they are effectively an all-encompassing term for a range of different investment strategies with varying levels of risk attached to each one.

There are a few things to know before considering investing in a Hedge Fund. Firstly, the initial investment required is often far higher than any other investment product on the market. Hedge Fund companies will typically demand an investment of £50,000 at least with some requiring up to £1 million or more to get the ball rolling.

Secondly, annual management fees are usually in the region of two per cent. This is not unheard of for investment funds but given the sizeable amount of capital involved this can be a lot of money.

Hedge Funds also impose performance fees of up to 20 per cent on any return, something that you don't commonly see with investment products and is aimed at motivating investors and fund managers alike. Given the high risk nature of Hedge Funds it is vitally important to think long and hard before investing and seek professional financial advice.

	Hedge funds lose £12.6bn on bad VW bets Hedge funds are set to face billions of pounds of losses after bets on the falling price of Volkswagen turned massively against them.
	RAB Capital closes funds as hedge funds face "severe stress" Hedge fund manger RAB Capital is to close several of its funds as assets under management fell by $4.3 billion in a year.
	'Excellent first quarter' for funds of hedge funds It was an excellent first three months of the year for investors in fund-of-hedge-fund products.
	Is now the time to invest in technology funds? The UK and global technology sectors have outperformed many other investment markets in recent years helped by tax reliefs and changing consumer behaviour.
	Invesco Perpetual launch three new balanced funds Invesco Perpetual have launched three new balanced funds focusing on equities, bonds and commodities that are designed to balance risk in different economic scenarios.