In recent years, the public has heard a lot about the glamorous-sounding world of hedge funds. Overall, hedge funds are a type of investment fund that operates with different regulatory constraints than other funds, such as mutual funds, pension funds and banks. Salman Khan of the Khan Academy describes how these funds are structured, how they operate, and the incentive fees managers earn from them.
From the first video, you’ll understand:
- The difference between hedge funds and other funds
- Restrictions on investing in hedge funds