What is a Hedge Fund?

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In this video I talk about what exactly a hedge fund is, how it invests, the structure, the fees, and more. There often tends to be a lot of confusion around hedge funds and so this short video hopefully demystifies many of the myths. Enjoy!

TIMESTAMPS:
00:00 - Intro
00:23 What is a hedge fund
01:13 Which asset class do hedge funds fall into
01:32 A few common hedge funds
01:57 Why hedge funds are known to be risky
02:20 Hedge funds vs mutual funds
02:43 Hedge funds can invest long and short
03:19 Different types of hedge funds
03:45 Use of leverage
05:05 Risk appetite
05:29 Regulation
06:18 Fees (how hedge funds make money)

Recommended Reading:

Video suggestions are most welcome – feel free to leave them in the comments below!

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What is a hedge fund?

#HedgeFunds #Students #Careers

[jambalaya]

Woww, thanks so much for explaining this clearly. January 2021 I'm here due to the GameStop stuff going on right now in the US markets. Thanks & God Bless:)

[mauricenickelson]

Smart, intelligent and articulate person.

[ozohirogi]

Bruv! I have watched a ton of videos trying to get my head around this.. but you are the ONLY ONE that makes sense so far. 👍🏽 really appreciate it 😎

[chetanjunankar]

Really like the way you simplify difficult topics in so easy way.
Keep uploading more.
Loved it .

[hirahasan]

Masha'Allah bro! Keep it up and please don't stop making such simplified videos. They are so much easier to understand as compared to other vloggers and websites.

[mohammedmushtaq]

Can you please make a video on Consultancy vs Investment banking or Banking industry for the confused graduates like me. It'll be very helpful, Thank you!!! Love your work!

[tamanasafei]

I came here after running out of Google searches. Thank you so much for simplifying it! Wishing you all the best, from your new subscriber 👍

[murphdog]

The only thing that confuses me is the negative bets and how they get money from that. (is it basically predicting a company to fail?) I'm really new to all of this so I am probably way off, but everything else made perfect sense.

[kalungimohammed]

@4:45 ... Its January 2021. Ma brother this just happened.

[ronakmakhija]

Keep it up afzal, i like the way u explained!

[judyl.]

0:50 pooled investment vehicle.
1:25 asset class is where you can invest in: fixed income, multiple asset, quant, alternatives. can invest long or short.
not very regulated. so they could negatively invest in something.
hedge is protect themselves.
4:00 they do leverage: invest through borrow money. because they have higher money.
accredited investor who knows what they're doing. large institutions can do.
administrative fee 2% and performance fee 20%
7:55 fee structures.

[RandageJr]

Explained in an excellent way as always. Thanks Afzal

[BagelzAlt]

Thank you for the perfect explanation 🙏

[shravanivak]

VIDEO SUGGESTIONS🚨📢
1) Careers in Hedge funds and generally in the BUY side of the market.
2) Stock Broking Companies
3)Credit Rating Agencies

[Thomasalbertini]

This video made me want to invest in hedge funds at the same time it was explaining me that I never will be able to.

[menonguy]

This is really amazing! Could you also explain niche areas like ecm and dcm?

[Rome.W]

Great explanation. Would love a video on how to break into hedge funds and the career paths those in hedge funds take.

[tuotuo]

Looks so easy to learn mate. Idk if U making it to look like so, or it's something that need to be checked. However, the interest is way higher NOW. Congrats!!!

[perryd]

Thank you very much for the Post. I appreciate the fact that you was easy to listen to and to follow. Many blessings neighbor.

[akshaysharma]

Please make a video on FRM, and CFA Vs FRM