The China Securities Regulatory Commission has successively approved a number of foreign-funded institutions to set up joint venture fund management companies with China securities companies, but those companies all belong to the same fund nature, rather than more flexible and enterprising hedge funds. Investors in hedge funds have strict qualifications. American securities law stipulates: participate in the name of an individual, and the annual income of the individual is at least 200,000 US dollars within two years; If you participate in the name of the family, the couple will earn at least $300,000 in two years; In the name of the organization, the net assets are at least $6,543,800+0,000. 1996 made a new regulation: the number of participants was expanded from 100 to 500. The condition of participants is that individuals must own investment securities worth more than $5 million. Generally, there is no such restriction with funds.

1, the number of investors Hedge funds: strictly limit the US securities law: participate in the name of an individual, with an annual income of at least $200,000 within two years; If you participate in the name of the family, the couple will earn at least $300,000 in two years; In the name of the organization, the net assets are at least $6,543,800+0,000. 1996 made a new regulation: the number of participants was expanded from 100 to 500. The condition of participants is that individuals must own investment securities worth more than $5 million. * * * One fund: unlimited.

2. Mode of operation Hedge funds: There are no restrictions, and investment portfolios and transactions are rarely restricted. Major partners and managers can freely and flexibly use various investment technologies, including short selling, derivative securities trading and leverage. Fund managers can give full play to their personal investment ideas and experiences, seize more investment opportunities and gain greater benefits. * * * One fund: limited, limited by investment varieties, proportion and decision-making methods. Fund managers are easily disturbed by performance ranking and other factors, so they give up the long-term expected annualized income target of the fund and pursue short-term income instead.

3. Supervision of hedge funds: The Securities Law of the United States 1933, the Securities Exchange Law of 1934 and the Investment Company Law of 1940 all stipulate that when an institution with less than 100 investors is established, it does not need to be registered with the financial authorities such as the US Securities and Futures Commission and is not subject to supervision. Because investors are mainly a few very sophisticated and wealthy individuals, they have strong self-protection ability. * * * Same fund: Strict supervision Because investors are the general public, many people lack the necessary understanding of the market. In order to avoid public risks, protect the weak and ensure social security, strict supervision is implemented.

4. Financing method of hedge funds: private placement. The Securities Law stipulates that when attracting customers, no media shall be used for advertising. Investors mainly participate in four ways: according to the so-called "reliable investment news" obtained by the upper level; Know hedge fund managers directly; Transfer through other funds; Special introduction of investment banks, securities intermediary companies or investment consulting companies. * * * Same fund: public offering, public advertising to attract customers.

5. Can hedge funds be established overseas? Offshore funds are usually set up. Advantages: it avoids the restrictions on the number of investors and tax avoidance in American law. Usually located in tax havens such as Virginia Island, Bahamas, Bermuda, Cayman Islands, Dublin and Luxembourg, these places have little tax revenue. Of the $68 billion hedge funds managed by MAR in June, $317 billion was invested in offshore hedge funds. This shows that offshore hedge funds are an important part of the hedge fund industry. According to the statistics of WHFA, if "funds of funds" are not included, the assets managed by offshore funds are almost twice that of onshore funds. * * * The same fund: it cannot be established overseas.

6. Degree of information disclosure Hedge funds: The information is not public and there is no need to disclose financial and asset status. * * * The same fund: information disclosure.

7. Remuneration of managers of hedge funds: commission+commission, fixed management fee 65438+ 0%-2% of assets under management, plus 5%-25% of annual profits. This form gives fund managers a strong incentive. * * * Same fund: Generally, it is a fixed salary, and the incentive motivation of fund managers is relatively poor.

8. Can managers participate in hedge funds? Fund managers are generally fund promoters and hold a considerable share of funds. Compared with the same fund, the fund manager of hedge fund pays more attention to the operation of the fund. * * * Same fund: generally do not participate in shares.

9. Are there any rules for investors to withdraw funds from hedge funds? There are restrictions. Most funds require shareholders to inform them in advance if they withdraw their funds: the time for informing them in advance varies from 30 days ago to 3 years ago. * * * The same fund: unlimited or limited.

10. Can I make a loan transaction? Hedge fund: You can use your own assets as collateral. * * * Same fund: no loan transaction.

1 1, scale hedge fund: small scale, with global assets of about 300 billion. * * * One fund: large-scale global assets exceed 7 trillion.

12, performance hedge fund: excellent 1990 1 to1998 August, with an average annual rate of return of 17%, which is much higher than that of general stock investment or pension funds and * * * mutual funds (during the same period, the average annual growth rate of Wall Street Standard & Poor's 500 stocks was only 60%. It is reported that some well-run hedge funds have an annual return on investment as high as 30-50%. * * * is inferior to the fund.