10 Things That Investors Should Know About Hedge Funds - JWM
HARRY M. KAT
Over the last decade hedge funds have become more and more popular with institutional and especially high-net-worth investors. As a result, the amount of assets under management by hedge funds has grown from around $40 billion in 1990 to an estimated $600 billion in 2002. In line with this, the number of hedge funds worldwide has grown to around 6,000. In the early days not much was known about hedge funds. Since 1994, however, a number of data vendors, hedge fund advisors, and fund of funds operators have been collecting performance and other data on hedge funds. This has allowed researchers to take a more serious look at hedge funds. Of course, research in this area is still in its early days.