Miami Hedge Fund Attorney
A hedge fund is an investment where investors’ funds are pooled into one account that is managed by a portfolio manager with a track history of employing a distinct strategy. Hedge funds are most often set up as private investment partnerships that are open to a limited number of investors and require a very large initial minimum investment. Investments in hedge funds can be illiquid as they often require investors keep their money in the fund for at least one year and, thereafter, the investors are permitted to withdraw only at the end of any month. Contact our Miami hedge fund attorneys for more information.
For the most part, hedge funds are not regulated by the Securities and Exchange Commission because they cater to sophisticated investors.
The term hedging is actually the practice of attempting to reduce risk by “hedging your bets,” meaning allocating some of your money to assets that will move in the opposite direction of the general stock market. Today, although they have the word “hedge” in the name, most hedge funds do not hedge and are not a hedge against general market decline.
Instead, most hedge funds profess the goal of beating the market after fees and costs. Each hedge fund will have a distinct investment strategy. Some will be conservative and others will be quite risky. Many hedge funds are not suitable for most investors because of the risky nature of their strategy. Often times financial advisors will place customer assets in hedge funds because the commissions can be higher than on other investments.
Carlson & Associates, P.A. has experience in handling cases involving hedge funds and overall Miami investment fraud.
Contact our Miami Investment Fraud Attorneys
Carlson & Associates, P.A. has years of experience helping Miami clients with investment fraud, corporate & partnership disputes, officer liability and coverage & legal and accounting malpractice. Contact us online or call 305-372-9700 for more information or assistance.