Structure of Hedge Funds

Hedge funds have similarities to mutual fund structures. For example, a hedge fund is a pooled investment vehicle that makes investments in equities, bonds, options and a variety of other securities. It can be run by a separate manager; much like a sub-advisor runs a mutual fund that is distributed by a large mutual fund company. The difference lies in the range of investment strategies available to hedge funds and the types of positions they can take. They are quite broad and in many instances, quite intricate.