How does a hedge fund work?

Candice Choi of the The Associated Press recently took time to break down how a hedgefund works and what are the basic ins-and-outs of investing in one. For example, one must have at least a $200,000 income, and the fact that hedge funds are not allowed to advertise, but are reliant on the word-of-mouth marketing by their investors. Read the full article here.

Investing continues, but with more caution

According to Financial Planning, more investors are turning back to hedge funds, according to JP Morgan's private bank. But the investors are paying more attention to certain things such as market volatility, liquidity and overall risk. They also care about the transparency of their investments. Read the full article here.

Investors returning to high risk investments

According to Reuters, JP Morgan Chase is seeing more investors turning to high risk investments. As investors has held back from investing in high risk opportunities over the past year, now investors are returning, as they believe that the financial crisis is, for the most part, over. Read more about new new income investment flow here.

Possible EU hedge fund regulations could cost $1.3 billion euros

According to Reuters, the EU has introduced a new legislative action called "Alternative Investment Fund Managers" directive with could impose regulations on where hedge fund can be sold along with imposing control on the leverage. This bill was adopted in order to control future financial mishaps. Should it be adopted, it will go into effect in 2012. Read the full article here.

Hedge funds continue to grow in August

According to Reuters, hedge funds continued to grow on account of the hope of economic recovery. The average hedge fund rose 1.85%, which was the sixth straight month that hedge funds continued their increase in funds after facing the steep losses late last year. Read the full article here.

London Mayor speaking out about financial regulation

According to the the Daily Telegraph, the Mayor of London, Borris Johnson, does not agree with the current possible European financial regulation of the hedge fund industry. Over 80% of the hedge funds in the world are in the UK, Johnson feels that they need to be protected from the possible regulation. Read the full article here.

TerraVerde Capital Management launches "Green" fund

According to FINAlternatives, TerraVerde Capital Management has launched a fund of hedge funds that will invest in opportunities focusing on the global reduction of carbon emissions.

Richard Bookbinder, managing member of Bookbinder Capital Management, stated:
“Managers that we invest with have underlying strategies that in someway are investing in company that are doing something to reduce carbon, such as clean energy, clean technology, water, weather, agriculture, carbon/carbon trading, the whole gamut."

Read more here.