Advising

Advising

Advising Project Part Three Becoming a hedge fund manager is something that I have been long interested in. A hedge fund is different from many funds because a variety of techniques can be used to enhance returns, such as not only buying stocks but shorting them also. They are also known for providing strong returns during meager economic times. Large investment bank companies such as Legg Mason and OppenheimerFundshave broken into the once exclusive hedge fund industry, and have made hedge funds available to the average investor. About 15 years ago there were only a couple hundred hedge funds in the United States. Now there are thousands of funds that handle more than $1 trillion in assets and are responsible for up to one fifth of United States Stock Market activity. Hedge Funds can be managed by a group of individuals or sometimes just one person. The fund managers typically make between 1% and 2% of the assets they are managing. In addition to that they can make up 30% of the funds gains and appreciations. Hedge Funds are not closely scrutinized by the government like mutual funds are. However as hedge funds continue to become larger and more influential in the stock market we may see that change. One of the largest investment banking companies worldwide which has managed hedge funds for years is Citigroup. Founded in 1988 with its headquarters in New York City, Citihas over 3,000 branches here in the United States and another 2,000 in other countries. Citigroup has long been prosperous, but with the recent economic crisis challenging the financial sector, Citigroup has been selling off portions of its assets to overseas companies. Citigroup is also dealing with loses by cutting jobs. Over the past two years they have cut over 30,000 jobs in an effort to raise profits. They have also raised interest rates on their credit cards. Another large American banking company that is known for its hedge fund managing is JP Morgan Chase and Company. Although the...

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