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whoPotential investors, hedge fund employees, and businesses that sell services to hedge funds should consider using a high quality hedge fund database. Hedge funds are pooled alternative investments marketed to wealthy and affluent individuals, families, and corporations for the purpose of generating profits. They may focus on capturing alpha to lessen fund volatility or they may employ risk and leverage, including derivatives, Hedge fund managers usually seek higher returns than specified market averages but not all hedge funds have aggressive goals. Hedge funds may be limited to a specific strategy, such as defensive fixed income, when yields are low and stock markets are rising.

Hedge funds frequently hire staff, including analysts, traders, and operations professional. The hedge fund manager is ultimately responsible for the fund’s performance and uses the work product of colleagues to make decisions. The hedge fund manager, like a portfolio manager in other types of buy side firms, makes strategic decisions about where to direct investor capital. He or she may also be a principal of the business. Passage of the Dodd Frank Act after the Great Recession put greater legal emphasis on compliance and technology used by hedge funds, but hedge are still considered less regulated than institutional managers. They may use more sophisticated financial products, including derivatives, options and futures to hedge downside risk or to leverage capital. Most hedge funds require a high minimum investment. Hedge fund investors sign contractual agreements and typically agree to longer holding periods. They often pay the hedge fund a performance fee.

Investors

Hedge funds offer investors with almost unlimited ways to diversify a portfolio. For instance, an investor with limited exposure to commodities may want to commit a certain percentage of resources to oil, natural gas, precious metals, and so on. The investor decides to invest in this kind of hedge fund and wants to find more information about funds that meet his or her needs. A hedge fund database is a useful tool for investors in search of objective data needed to make an investment decision.

Future Employees

Business school graduates, certified financial analysts (CFAs), or experienced financial professionals, including back and middle office staff or accounting and compliance officers, may want to work for a hedge fund. They may want to create an outreach to a specific type of fund by size, asset mix, location, or all of the above. They may want to know more about the principals of hedge funds or desire contact information about hiring decision makers at hedge funds. Access to this information is limited at most libraries. Job seekers say it is difficult to assemble this information even with excellent online research skills. A searchable hedge fund database is an excellent resource for those seeking hedge fund jobs.

Service Providers

Like other financial businesses, hedge funds need and purchase an array of services. When the hedge fund manager needs a significant new employee, he or she is likely to use the services of retained or contingency recruiters who know the market. The hedge fund manager is likely to review resumes recommended by current employees but it is usually considered best practice to engage a third party recruiter for any major search requirement. Recruiters in search of information about hedge funds use a hedge fund database.

Law firms, accounting firms, and professional services firms such as those who offer the hedge fund access to a team of compliance experts want to market services to hedge fund buyers. These types of businesses often access a hedge fund database.

Similarly, software providers with cutting edge technology want to sell products and services to hedge funds. Identification of the types of hedge funds that best match the software provider’s technology can help sales and marketing professionals to connect with hedge fund buyers. Technology and software firms need information and are likely to a search for information in a hedge fund database.

Conclusion

Many individuals, including investors and job seekers, should consider using a hedge fund database. For instance, comparing a hedge fund to its competitors is helpful when interviewing the hedge fund investor relations professional or prior to meeting the hedge fund human resources team about a job. Vendor organizations to hedge funds are varied and often quite tailored to meet the needs of certain kinds of funds. Those vendors in search information will also benefit from using a hedge fund database.