Hedge Fund Fact Sheets

Hedge funds are frequently among the most profitable investment funds in the world. While they can make a lot of money, in order to make the most amount of money possible, they need to be able to raise capital from investors. The process of raising capital can be challenging as it requires being able to sell potential investors on the benefits that come with investing in the fund. When looking start raising capital, all hedge funds should put together a hedge fund fact sheet to show their investors. When looking to put together a hedge fund fact sheet, there are various pieces of information that should be included.

One of the items that should be included on any hedge fund fact sheet is the investment strategy. Hedge funds have a very open range of investments that they can choose from. Hedge funds can invest in pretty much anything that they would like in pretty much any market located across the world. To entice investors, a hedge fund should include information that display what their investment strategy is and where their capital is invested. If they are planning on making investment changes in the future, it should be included on the fact sheet as well.

Another item that should be included on the hedge fund fact sheet is what the prior investment returns have been. Investors will want to see how successful the fund has been in the past when it comes to investing. A hedge fund should clearly post what their prior rates of return have been, how different investments have fared in past, and how their investment returns have to similar investment funds.

The third item that should be included on a fact sheet is how the company complies with regulations. The company should state that they are in compliance with all federal regulations that mandate hedge funds and whether their results are audited by a third party accounting firm. This will give an investor comfort that the results that are being advertised are legitimate.