1, number of investors
Hedge funds have strict restrictions, the number of investors is 500, and the condition of participants must be that they have investment securities worth more than 5 million US dollars. Second, there is no requirement for the number of people in the same fund.
2. Mode of operation
In terms of operation mode, there are no restrictions on hedge funds, and the main partners and managers can freely and flexibly use various investment technologies to obtain greater returns; 2 * * * The same fund is limited by investment brand, proportion and decision-making mode.
Step 3 manage
For hedge funds, because the investment target is a few rich individuals, they have strong self-protection ability and can be exempted from supervision; And * * * with the fund because investors are the general public, many people lack understanding of the market, in order to avoid public risks, protect the weak and other considerations, * * * with the fund has strict monitoring.
4. Financing methods
Hedge funds take the form of private placement and do not need to use any media to advertise. * * * The same fund attracts customers through public advertisements.
5. Can it be established offshore?
Hedge funds generally set up offshore funds to avoid the restrictions on the number of investors and tax avoidance in American law. * * * The same fund cannot be established overseas.
6. Degree of information disclosure
Hedge funds: information is not public, and there is no need to disclose financial and asset status.
* * * The same fund: information disclosure.
7. Manager's remuneration
Hedge fund: commission+commission, 65438+ fixed management fee of 0%-2% of assets under management, plus 5%-25% of annual profit. 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 the manager share it?
Hedge funds: fund managers are generally fund sponsors and hold a considerable share of funds. Compared with the same fund, the fund manager of hedge fund is more concerned about the operation of the fund.
* * * Same fund: generally do not participate in shares.
9. Is there any provision for investors to withdraw funds?
Hedge funds: There are restrictions. Most funds require shareholders to inform them in advance if they withdraw their capital contribution: 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 for mortgage trading.
* * * Same fund: no loan transaction.
1 1, scale
Hedge fund: Small in scale, with global assets of around 300 billion.
* * * One fund: large-scale global assets exceed 7 trillion.
12, performance
Hedge funds: During the period from June 65,438+090 to August 65,438+098, the average annual rate of return was 65,438+07%, which was much higher than the average stock investment or investment pension funds and * * * mutual funds (during the same period, the average annual growth rate of S&P 500 stocks on Wall Street was only 65,438+02%). It is reported that some well-run hedge funds have an annual return on investment as high as 30-50%.