Hedge Funds: What You Need to Know
Firstly, this is not an advertisement or solicitation. This is informative only, and does not serve as promotion or advertisement to non-accredited persons.
What is a Hedge Fund?
Hedge funds are private investment vehicles that pool capital from accredited investors to invest in a variety of asset classes, including stocks, bonds, derivatives, and commodities. They are typically managed by professional fund managers who employ sophisticated strategies to maximize returns. The primary appeal of hedge funds is their potential for high returns, often through strategies such as long and short positions, leverage, and arbitrage.
One key benefit of hedge funds is their ability to generate absolute returns, meaning they aim to make profits regardless of market conditions, unlike traditional mutual funds that often rely on overall market growth. This makes them particularly attractive during periods of market volatility or economic downturns.
Hedge funds also offer diversification by investing in a wide range of assets, including alternative investments that might not be available in traditional markets. This helps reduce risk and smooth out returns over time.
However, hedge funds are not usually for every investor. They typically require high-minimum investments, charge higher fees (including performance-based fees), and are subject to less regulatory oversight. Despite these factors, hedge funds can be appealing for wealthy individuals and institutional investors looking for enhanced returns, diversification, and risk management strategies.
Kingsbridge Hedge Fund
Kingsbridge is excited to create its own hedge fund. Currently being formed, our hedge fund will be open to all accredited investors. For clarification, an “accredited investor” is someone that has $1,000,000 in available net worth, or that has earned $200,000 per year as an individual or $300,000 per year as a couple for the last two years.
For many, that's not a realistic financial state right now, and that's exactly why they rig the system that way; to keep most people out. But, we're creating a solution to that! Kingsbridge is developing an investment and wealth advisory program for more modest investors. The goal is to gain access to this type of rapid growth investment and then graduate into our actual hedge fund investing.
With Kingsbridge, we're bringing these opportunities to smaller sized investors. We'll require smaller “buy-in,” and an annual fee if non-accredited. This fee is required, again because the system is designed to keep "poor" people out of the markets. A standard hedge fund has 3 types of fees: a management fee, a carry fee, and a super carry fee. However, the system is created in such a way that if a firm takes non-accredited investors (the vast majority of the world), then they're not allowed to charge those fees. That may sound nice, but it isn’t, because that means it's “not worth it” for investment firms to allow non-accredited investors. Thereby ensuring the “poor” are kept out. The law even prohibits advertising to non-accredited people.
Kingsbridge does not accept that. So, we were able to find a work-around to allow non-accredited investors access to this amazing wealth creation tool, while still being able to pay the staff that you work with. That's why we charge a simple annual fee. It's true that we don't really profit from this program, but the goal is to grow your wealth with us, and then when it grows to the point that you become an accredited investor, you graduate into our true hedge fund, and we all grow together.
Just another way that Kingsbridge it trying to change the opportunities for average people, families, and investors.
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