Hedge Funds History

The first hedge funds appeared in the middle of the 20th century. Hedge funds history dates back to 1949, when Alfred Jones launched an instrument allowing to take long-term positions in stocks, selling some of them as part of risk management.

Hedge funds are pools of participants' capital managed by professionals to maximize return on assets. They use a variety of strategies, including complex and risky ones. These types of funds require large initial investments, so they are available only to wealthy and accredited investors.

Historical performance of hedge funds contributes to their development and attraction of wealthy investors. Currently, there are more than 12,000 hedge funds in the world, most of which are located in the USA. The number of hedge funds continues to grow, but they will adapt to lower fees and the widespread use of modern technology. Managers aim to implement creative and sophisticated investment strategies, which may include positions with serious leverage.