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Traditionally hedge funds have been unrated which was why Madoff made off with so much money.

Normally hedge funds have only been sold to rich people who should have known what they were doing. The government does not normally try to protect rich people from stupid investments and unscrupulous securities salesmen. As a result, we do not hear about it when rich people make billions, only when they lose billions.

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Q: Do hedge fund have traditionally been highly regulated?
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What are the reasons why banks are been regulated?

They are being regulated because it is likely they will try to get more money from customers, which will put the economy out of shape


What regulations are involved with hedge funds?

It has been found that hedge fund regulations vary depending on the country. In the US some of the regulations are that they are subject to regulatory, reporting and record keeping requirements. Some also have regulations that prohibit manipulation and fraud.


Why gold is safe investment?

Gold, in its raw state, is primarily used for investment, as in gold coins or bullion, and for jewelry or other adornments. Most investors buy gold as a safe hedge against economic conditions such as inflation, market uncertainty, and political discontent. While gold is a long-term investment, its increase over the decades has been a steady 2 percent, with as much as 4 percent in recent years. While gold is traditionally safe, it is behaving more erratically, and investors should use caution when buying gold.


Difference between venture capital fund and hedge fund?

Investing takes many forms, from simple to complex, safe to risky. If you have money you want to put to work, you should first prepare by researching the many different strategies available. For investors with a large amount of capital, hedge funds and venture capital are two popular options.Hedge FundA hedge fund is a pool of investment capital that a manager invests on shareholders' behalf. In this basic operation, a hedge fund is similar to a mutual fund, but with a crucial difference: the complete discretion it gives the fund manager to invest where and how he chooses. This means hedge funds can hold any and all investment types, from the safest U.S. Treasury bond to the riskiest junk bonds, stock options and futures contracts. Entrance FeeHedge funds have much higher minimum investments than ordinary mutual funds and place greater restrictions on withdrawals. Some hedge funds require you to stay invested a minimum of a year or more to avoid a run on the fund that could force it to liquidate its investments. Hedge funds tend to be riskier than mutual funds, and it can be difficult to ascertain how much their holdings are worth. Because hedge funds are not regulated by the SEC, potential investors must thoroughly research the performance and management before entrusting their money to a hedge-fund manager. Venture CapitalA venture fund takes a more active role in its investments. It allows investors -- individuals as well as institutions -- to invest money in new companies and enterprises. The fund pools money from its partners and buys a share in companies that do not yet have the finances or history to successfully offer shares on the public stock exchanges. In exchange, the venture fund earns a share of the company's future earnings, if any, and its partners divide the proceeds according to their participation in the fund. Venture Fund Risk and ReturnVenture funds represent a high-risk, high-return investment for their partners. Many companies in which a venture fund invests do not yet have sales or profits, and some stand for only a concept or invention that has not yet been brought to market. Members of a venture fund may take an active role in the operation of the new company, taking seats on its board of directors or providing active advice and guidance. Once the company makes an initial public offering, the venture fund sells its stake and divides the proceeds to its own partners.


How do Private Equity funds differ from hedge funds?

Yes, by a lot. By definition a private equity group is a group focused on investing in troubled companies and other assets. Hedge funds are unregulated investment fund. But hedge funds are more open to small investors compared to the private equity investors that risk more money. Also private equity groups are interested investing in troubled companies with many of them taking over companies turing them around and then selling them. Hedge funds do not do take overs as frequent and use other techniques such as borrowing money buying stock and then selling them short. They have more interest in buying a companies stock than buying the whole company. In the past decade or so both have been able to make large profits because of the low interest rates on the loans they take out to fund their ventures. You can get more information from here also : http://www.opalesque.com

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When do one need the services of an hedge fund attorney?

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What are the reasons why banks are been regulated?

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Traditionally crime has been thought of as a class phenomenon?

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