Vol, Don't thing so (later I found the answer. Look below), since they have a limit on how many investors it can have (I think less than 100. If you multiply $1K or $50K you get the idea that it's little money). I'll try to do more research and get back to you latter. I just head two tests today so far (slept 2.5 hours). One more to go today, another tomorrow (2nd part of today), plus another on Fri.
Got it! "SEC limits hedge funds to 99 investors ...[with] net worth of at least $1..." Haven't read the all thing. nashville.net
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VAN HEDGE FUND ADVISORS INTERNATIONAL
What are Hedge Funds?
A U.S. "hedge fund" usually is a U.S. private investment partnership invested primarily in publicly traded securities or financial derivatives. Because they are private investment partnerships, the SEC limits hedge funds to 99 investors, at least 65 of whom must be "accredited." ("Accredited" investors often are defined as investors having a net worth of at least $1 million.) The General Partner of the fund usually receives 20% of the profits, in addition to a fixed management fee, usually 1% of the assets under management. The majority of hedge funds employ some form of hedging -- whether shorting stocks, utilizing "puts," or other devices.
Offshore hedge funds usually are mutual fund companies that are domiciled in tax havens, such as Bermuda, and that can utilize hedging techniques to reduce risk. They have no legal limits on numbers of non-U.S. investors. Some meet requirements of the U.S. Securities and Exchange Commission that enable them to accept U.S. investors. For the purposes of U.S. investors, these funds are subject to the same legal guidelines as U.S.-based investment partnerships; i.e., 99 investors, etc.
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