1. Investor qualification
Investors in hedge funds have strict qualifications. The securities law of the United States stipulates participation in the name of an individual, with an income of at least $200,000 in the last two years. If you participate by surname, your husband and wife have earned at least $300,000 in the last two years; In the name of the organization, the net assets are at least $6,543,800+0,000. 1996 made a new regulation: the number of participants was expanded from 100 to 500. The condition of participants is that individuals must own investment securities worth more than $5 million. Generally, there is no such restriction with funds.
operate
The operation of hedge funds is unrestricted, and there are few restrictions on investment portfolios and transactions. Major partners and managers can freely and flexibly use various investment technologies, including short selling. Trading and leverage of derivatives. The general * * * fund is more restricted in operation.
Step 3 manage
Hedge funds are currently unregulated. The Securities Law of the United States 1933, the Securities Exchange Law of 1934 and the Investment Company Law of 1940 all stipulate that institutions with less than 100 investors need not register with the financial authorities such as the Securities and Exchange Commission of the United States when they are established, and can be exempted from regulation. Because investors are mainly a few very sophisticated and wealthy individuals, they have strong self-protection ability. In contrast, the supervision of mutual funds is relatively strict, mainly because investors are the general public and many people lack the necessary understanding of the market. In order to avoid public risks, protect the weak and ensure social security, strict supervision is implemented.
4. Financing methods
Hedge funds are generally initiated through private placement, and the securities law stipulates that no media should be used to advertise when attracting customers. Investors mainly participate in four ways: according to the so-called "reliable investment news" obtained by the upper level; Know hedge fund managers directly; Transfer through other funds; Investment bank. Specially introduce securities intermediary companies or investment consulting companies. The general * * * funds mostly entertain customers through public offering and public advertising.
5. Can the case be established?
Hedge funds usually set up offshore funds, which has the advantage of avoiding the restrictions on the number of investors and tax avoidance in American law. Usually located in the Virgin Islands, Bahamas, Bermuda, Cayman Islands, Dublin, Luxembourg and other tax havens, these places have little tax revenue. Of the $68 billion hedge funds, $70 million is invested in offshore hedge funds. According to statistics, if "funds of funds" are not included, the assets managed by offshore funds are almost twice that of onshore funds. Ordinary * * * funds cannot be established overseas.
Therefore, ordinary funds can also hedge, but there are many restrictions.
In China, because there is no Public Offering of Fund, you can't buy and sell futures foreign exchange, so there are no financial products that can be sold short, so you can't hedge.