Can anyone invest in a hedge fund? To invest in hedge funds as an individual, you must be an institutional investor, like a pension fund, or an accredited investor. Accredited investors have a net worth of at least $1 million, not including the value of their primary residence, or annual individual incomes over $200,000 ($300,000 if you're married).
How much do you make investing in a hedge fund?
The traders and portfolio managers within the fund are usually paid as a percentage of their returns, typically 10-20%. E.g. if a manager returns 10% in a year, they'll receive about 1-2% of the assets they manage within the fund. So if they were managing $100m of assets, then they'd earn $1-$2m in that year.
How much money does a hedge fund have?
Hedge funds have existed for many decades, and have become increasingly popular. They have now grown to be a substantial portion of the asset management industry, with assets totaling around $3.8 trillion as of 2021. Hedge fund managers can have several billion dollars of assets under management (AUM).