A hedge fund is started the person who is the general and managing the structure of most hedge funds. This is the person who makes the actual investment decisions for the fund. They have investment consultant with a proven track record of managing and running business. This individual, sometimes with the assistance of some of the initial investors and get investors to invest in the fund.
How a Hedge Fund Raises Money?
A hedge fund raises its money from many sources like high net worth, persons, corporations, foundations, donations, and pension funds. Hedge funds do not look for individual small investors, but as a replacement look out investors with large amounts of investment money. A hedge fund be subject to the initial performance of the fund manager. To start and set an investment record, the fund manager invests some amount of own money into the fund.Which attack other investors. A qualified management and good performance would result an additional increase in form of capital. And attack new investors. The main secrete behind the welcoming new investors is to bring new fund for the hedge fund and manage the fund profitability and move according to plan to bring new investors for future.
Hedge Fund Marketing
Hedge funds are mostly marketed by the fund manager who has links with friends or business persons or through third-party. Hedge fund managers may produce some basic marketing materials like “pitch book” or “tear sheet,” which contains information of the fund’s strategy, the fund manager and the terms for investing in the fund. And set up an informational website that shows their investment plans and provides information on their backgrounds and experience as investors, and investment advisors. Fund managers usually have the publicity of offering business ideas and business experience. They sometime hire the persons with additional capital in the fund.