Welcome to the Hedge Fund Profile Series
As a summer analyst at a hedge fund in New York City, I developed a particular interest and familiarity in the industry - the movers and shakers, the firms that make headlines (for better or for worse). So, I welcome you to a new series dedicated solely to hedge funds. In this column, I will focus on both the industry as a whole, and on certain firms–-aiming to provide you with a comprehensive understanding of how hedge funds function, who the major players are and, most importantly, what they actually do.
Seeing as we just got back to school, I won’t inundate you with information… yet; for now, here is a quick rundown.
In its most basic form, a hedge fund is an investment vehicle for wealthy individuals and institutional investors--people and organizations that have the capital to invest, but not the know-how to do so on their own. Though often described by journalists as secretive and unregulated, that is not actually the case, at least not anymore. Gone are the days where hedge funds governed themselves, if they ever did at all. Now, depending on the size of the fund, they are regulated heavily by the SEC, even with today’s business-friendly government in power.
For those who recall, the last article I wrote for The Commentator was about the hit Showtime TV show “Billions,” and how it compares to the real hedge fund world, particularly Steven Cohen’s Point72. As such, the first official “Hedge Fund Profiles” column will be a deep dive into the storied world of S.A.C. Capital-turned-Point72. I promise, it reads more like a novel than a research report, and I’m sure you’ll enjoy it.
Thank you for coming along with me on this journey through the murky waters of the hedge fund industry.