Hedge funds

Vinny1 · Apr 11, 2003

How many investors does a hedge fund allow to participate?Is the maximum 99?Do they also have to be accredited,meaning $1 million net worth or more,or $200,000 or more annual income for the past 2 years?

Ebo · Apr 11, 2003

None of the above!
I am in a Hedge fund, and there are several hundred partners.
Some are not worth over $1MM and some are not sophisticated investors. The minimums can be quite high in some funds.

dotslashfuture · Apr 11, 2003

they all have to be acredited investors to buy in initially.

Ebo · Apr 11, 2003

This is a gray area.

PuffyGums · Apr 11, 2003

Quote from dotslashfuture:

they all have to be acredited investors to buy in initially.

I was wondering about a friends and family type trading vechicle where no one would be accredited. Whats the legality of that?

Vinny1 · Apr 11, 2003

Here it says that there must be less than 100 investors......http://www.investorwords.com/h1.htm#hedgefund

Ebo · Apr 11, 2003

Do you believe EVERYTHING you read on a web sight?
I am in a HEDGE fund and I am telling you that is incorrect.

Vinny1 · Apr 11, 2003

Do you work for a hedge fund or have money invested in a hedge fund?

TM_Direct · Apr 11, 2003

Quote from Ebo:

Do you believe EVERYTHING you read on a web sight?
I am in a HEDGE fund and I am telling you that is incorrect.

Vinny is correct and so are you ...you are arguing apples and oranges.......A HEDGE fund DOES not have to register with the SEC if they have less then 15 million or 100 investors........

You may be trading with a REGISTERED hedge fund....in which case their can be several hundred investors

MYDemaray · Apr 11, 2003

Some funds (503(c) funds??) allow up to 500 accredited investors...individuals w/ over $1MM or 200K/yr income for past two years...or institutions w/ $5 MM in assets. I think this is right...but I'm not sure...whereas other funds allow up to 100 (501(c)??)...can't remember the exact names/numbers.

Large institutions can drop several million into one fund. Also, you can run on-shore and off-shore counterparts (run through a master-feeder structure) that are essentially the same fund...