The Comprehensive Guide to

Passive Income Investing


Learn the secrets of how Paul Tracy generates over $XXX,XXX per month in passive income!

How to Become Financially Independent Through Passive Income Investing

What is a Hedge Fund Manager?

A hedge fund manager is an individual responsible for directing all activities associated with the operation of a hedge fund.

How do Hedge Fund Managers work?

The role of a hedge fund manager is similar to that of a mutual fund manager. Hedge fund managers are primarily responsible for running a hedge fund's daily affairs and for making ongoing investment decisions regarding the composition of the fund's portfolio. A hedge fund manager manages a fund's risk and return, marketing strategy, and capital funding from unit sales.

Why do Hedge Fund Managers matter?

Hedge fund mangers are compensated handsomely, but they also face tremendous pressure because of the high risk of the portfolios that they manage. It is debatable how much influence the actions and skills of a hedge fund manager have on the long run return of the fund's portfolio. The difference between the return of the hedge fund and a predicted rate of return is called 'alpha.' In other words, alpha is a measure of the skills of a hedge fund manager.

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Paul Tracy
Paul Tracy

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.