The global hedge fund industry comprises companies with assets of more than $2 trillion. In the USA, this kind of industry includes companies with combined assets that are estimated by $1 trillion. There are many American headquarters that operate internationally. The hedge fund is formed by individuals and organizations that involve money to the fund. These investors are mainly large institutions and companies as well as high wealthy individuals.
The hedge fund is opened only for particular organizations, for example, pension funds which are operating according to specific regulations, strategies, and techniques. According to the research, it uses such techniques as short selling and leverage. The hedge fund industry is capital-intensive and is driven by the growth of investment capital. The largest U.S. hedge funds are JP Morgan Asset Management, Bridgewater Associates, Paulson & Co, and Highbridge Capital Management. The world hedge fund industry is operating under the management of Deutsche Bank. The largest global hedge funds are: London-based firms Man Investments and Brazilian hedge fund Gavea Investimentos, GLG and AHL partners. The available information reports that due to the economic growth in South America and Asia, the global hedge funds multiply. Institutional investors manage hedge fund services and investment of capital. Investment expertise is designed to estimate the profitability of individual funds. Therefore, companies and individuals with high profitability can participate in big financial transactions. Hedge funds are operated and managed by institutions or individuals that also are the fund’s investment advisers. According to research, hedge fund receives high profitability from investment using proper techniques. Hedge fund managers invest their own money and then receive profit from this.
In conclusion, it is worth mentioning that research of the hedge fund industry helps understand the purpose of hedge funds, their specification, and the role of management and hedge fund investment strategies that may help to achieve objectives in the future, while working in this area.