How to Give Money to a Hedge Fund

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Before giving money to a hedge fund, it's important to get a list of hedge funds from a large brokerage firm. Learn about getting hedge fund approval from a potential shareholder with help from a portfolio manager in this free video on investments and the stock market.

Part of the Video Series: Stocks Investment Tips
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Video Transcript

If you've been reading the financial newspapers and magazines over the last year, you've heard about a class of investor called Hedge Funds. Once you've made the decision to invest in them how are you going to do it? Well the first thing you're going to need is a list of various Hedge Funds in which you can put money. One of the easiest ways to get a list is to go back to the data bases that track the performance of Hedge Fund manager that report to them. No matter where you are in the world any large brokerage firm should be able to furnish you with that data. Once you've identified a fund that you are considering investing in, the fund would then have to approve you as a potential share-holder. How does that happen? Well you give them data on who you are and how much money you have, and how much money you make. And they see if that qualifies you as an investor in their company. It may not. In addition they can put other restrictions on any other share-holder that they would like. Most Hedge Funds are private and they're not obligated to report to you the share-holder of the same way that a public company would be. So you need to be able to handle that. In addition your funds will probably not be liquid at all for long periods of time if you're an investor in in a Hedge Fund. So you need to be prepared and able to wait until the end of the term is specified in the contract. If you try and get out early there are likely to be big penalties. So that's a little about how you invest in Hedge Funds and best of luck. I'm Roger Groh of Groh Asset and thank you very much for spending time with me.

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