What should I look for in a Hedge Fund?

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There are many factors you should consider before investing in a hedge fund. The list below indicates several important considerations.

• Manager: Who founded the hedge fund? Who manages the fund, and what is his or her track record?
  
• Investment Strategy: How does the hedge fund plan to offer you a consistent return?
  
• Manager Compensation: What exactly is the fee structure?
  
• Reports of Returns: How frequently do investors receive reports about their investments?
  
• Risk Assessment: How does the hedge fund make its risk assessments?
  

Next Page: What are Mutual Funds?

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• What should I look for in a Hedge Fund?