An experienced financial professional, Ed Stavetski currently serves as the managing director of PCM Partners, LLC, a firm he established in 2009. As a financial and investment expert, Ed Stavetski has been invited to speak at universities, conferences, and institutes on a variety of subjects, including hedge funds.
A hedge fund is a managed investment portfolio that is designed to maximize returns through the use of a variety of investment strategies. Most of the time, hedge funds are legally organized as limited liability companies or limited partnerships and are managed by an individual who is paid a percentage of the fund’s profits. Typically, hedge funds are open to a small number of investors who are required to make a large initial investment, which they are often required to keep in the fund for at least one year.
Unlike mutual funds, hedge funds are largely unregulated, which allows fund managers to make higher-risk investments that have the potential for much higher returns. Not everyone can invest in a hedge fund, however. Because hedge funds are considered unregistered companies, only accredited investors are allowed to invest in them. To be an accredited investor, one must have an income of $200,000 per year, a net worth over $1 million, or at least $5 million in current investments. Today, there are thousands of hedge funds in operation with trillions of dollars in combined assets.