Please enable JavaScript.

Coggle requires JavaScript to display documents.

C6. IB of Investment Management, Hedge Funds - Coggle Diagram

- - - - restricted in their use of derivatives, leverage and short selling
      - make extensive (sâu rộng) use of derivatives, leverage and short selling
        
        manager use different management styles and pursue various trading strategies. The risk to investors depends on the specific strategy pursued by the fund
      - Incentive fees
        
        normally charge incentive fees ~ 20% of profits in-excess-of (hơn quá) a chosen benchmark
        
        Incentive fees are nearly always asymmetric. This means H.F earn incentive fees when they do well but do not have to pay fees when they do poorly
        
        Liquidity
        
        designed for the common man as a saving vehicle hence it is thought to be right that mutual funds allow investors to redeem their money at any time
        
        H.F impose lock-up(khóa lại) periods as long as several years in which the investment cannot be withdrawn. These restrictions limit the liquidity of investors but enable the fund to invest in illiquid investments where the return may be higher without worrying about meeting demand for redemptions