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Imagine a British investor with $10-100k in her pocket. She wants to see the previous performance of various British and overseas funds to choose the one to invest. And she wants to filter out the ones which accept minimum one million investment. Is there a website to help her to make the informed choice?

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3  
This question doesn't even begin to conform to what this site is about. – chrisaycock♦ Apr 19 '11 at 13:58
OK. Where on stackexchange can I ask it then? – QAZ Apr 19 '11 at 14:42
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This is more a personal finance question than a quantitative question. – Joshua Ulrich Apr 19 '11 at 23:05
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@QAZ -- You can spend some of that $10-100K to subscribe to the Hedge Fund Research database hedgefundresearch.com/index.php?fuse=pricing&1303259036 But given that others have pointed out that hedge funds are geared towards institutional investors and high-wealth individuals, I think you're best off investing in a FTSE index mutual fund. But Joshua's link is a better outlet for those type questions. – richardh♦ Apr 19 '11 at 23:58
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Since the OP has reworded his question to focus on mutual funds, I've decided to close this again. Let me make one thing very clear: I do not appreciate non-quants asking non-quant questions on the Quant SE. I closed the original version of this question because it's painfully obvious that the OP is not even in this field. – chrisaycock♦ Apr 20 '11 at 0:06
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closed as off topic by Joshua Ulrich, chrisaycock♦ Apr 20 '11 at 0:03

Questions on Quantitative Finance Stack Exchange are expected to relate to quantitative finance within the scope defined in the FAQ. Consider editing the question or leaving comments for improvement if you believe the question can be reworded to fit within the scope. Read more about closed questions here.

1 Answer

up vote 5 down vote

Your example shows a fundamental ignorance of how hedge funds operate:

  • Hedge funds cannot advertise and are limited to 499 investors. Given these restrictions plus the capital requirements to hold positions overnight, it is a virtual guarantee that a fund would not take an investment of $10K.
  • Hedge funds are usually LPs, which means that the GP (the asset manager) must accept a new client specifically. No one can just choose to invest in a hedge fund. (A couple hedge fund managers have publicly traded equity, but that's different from the underlying fund.)
  • Hedge funds are generally not required to publicly file their track record. Occasionally an investors' letter might leak onto the interwebs, but most fund managers consider the specifics of their P&L to be just as proprietary as their trading strategies.

And one final item of note is that all investors must be accredited (ie, the investor must be wealthy already).

So your premise doesn't really make any sense to begin with. Given the above regulatory framework, a website like what you've described is almost impossible to build and will definitely be useless if it even existed.

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Does this relate to the US regulations or UK and other countries as well? What about mutual funds? What a $10-100k investor supposed to do then? – QAZ Apr 19 '11 at 23:06
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@QAZ My answer is US-centric, though it's pretty similar in the UK. I see you've edited your question to ask about mutual funds; you do know that mutual funds and hedge funds aren't the same thing, right? Mutual funds are heavily regulated and are aimed precisely at retail investors, like the hypothetical person in your question. You really should repost your question about mutual funds (not hedge funds) on the personal finance SE. – chrisaycock♦ Apr 20 '11 at 0:02

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