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What are private equity funds, private equity funds and hedge funds?
Private equity investment is one of many investment methods, and the words "private equity" and "equity" define its uniqueness. So private equity investment funds are different from private equity investment funds and hedge funds. Comparison between private equity investment funds and private equity investment funds. Private equity securities investment funds mainly refer to funds that raise funds from investors through private placement, manage them and invest in the securities market. There are essential differences between private equity investment funds and private equity investment funds in investment objects or products: private equity investment funds generally invest in unlisted companies and participate in company management. Compared with listed companies, private equity investment funds have lower valuations and richer returns, but their liquidity is limited and their risks are higher. Private equity investment funds invest in listed companies, generally do not participate in the management of enterprises, and buy according to market valuation, and there is no room for bargaining. Investment products have high liquidity, simple investment process and short return on investment. The return on investment depends on the portfolio and its performance in the securities market.

Comparison between private equity investment fund and hedge fund: hedge fund is an investment fund, which mainly uses various trading means to hedge, transpose and hedge securities and securities derivatives in the secondary market and earn huge profits. It is very similar to private equity investment funds in many aspects: the sources of funds for both are basically private equity; There is no obligation to disclose information to the public; Both can gain huge benefits. The difference between the two is mainly reflected in the investment objectives and concepts: the investment objectives of private equity investment are mainly to improve the operating performance of investment enterprises and realize the final exit; Hedge fund investment mainly gains income in the secondary market through various trading methods such as buying low and selling high. There is a special form of hedge fund: active hedge fund. This form of hedge funds usually act together to obtain minority shares of enterprises, put pressure on the management of enterprises, and make the development strategy of enterprises change to a certain extent. This kind of hedge fund has a strong PE color and is regarded as a transition between PE and hedge funds.