They are exempt from Investment Co. Act of 1940. Some offshore funds are incorporated and publicly traded on foreign exchanges. If sales of interests in the hedge fund are made only to accredited investors, no specific disclosure to the investors is required. If sales are made to one or more non-accredited investors, the same kind of information must be provided as the investor would receive in connection with an offer of interests in a registered fund. The manager hopes to realize profits from shifts in global interest rates and changes in economic policies.
Macro funds are the largest category of hedge funds.
Hedge fund managers are not required to register with the SEC as investment advisors. The Experience of Managers and Investors. Edited by Ronald A. Lake. Collection of essays written by and for professionals as well as serious students seeking an insightful overview of the trends, developments and issues facing hedge funds. Money Manager Directory.