Who manages hedge funds?
Historically hedge fund managers are entrepreneurs who invest a large portion of their own money in a particular investment strategy and gather additional money from a handful of private clients to help take advantage of the buying power of a larger magnitude of funding. Now, however, large mutual fund companies have entered the hedge fund business partly to stem the loss of top performing managers to the higher pay of top hedge funds, and partly to service and satisfy investor demand. Web Reference: more about “Who manages hedge funds?” Back to Questions • How are hedge fund managers compensated? How managers are paid is as diverse as hedge funds themselves. However, managers typically charge a management fee of 2 percent, but are often (sometimes preferably) rewarded for how well they execute the fund objectives and the achievements of fund performance. In some scenarios a hedge fund manager can receive 20 percent or more of the fund’s gains, so long as the fund achieves a certain re
