Award-winning financial advisor Micah Scheinberg leverages over 25 years of experience in the securities industries to help clients. As managing director of Alex Brown, a division of Raymond James, Micah Scheinberg is skilled in alternative investments and familiar with such investment opportunities as hedge funds.
Hedge funds are a type of managed investment portfolio composed of pooled investments. Typically, they are private, meaning that they have certain limitations requiring large minimum initial investments or net worth requirements and that mainstream investors do not always have access to them. Typically, the strategies that hedge funds employ are high-risk strategies that result in high yields for investors. This includes stock, real estate, and other investment options. For this reason, hedge funds often limit which investors can participate in them.
Many people conflate hedge funds with mutual funds, which is another type of pooled investment. Mutual funds offer investors a huge range of choices when it comes to their desired portfolio. They often focus on specific asset classes, though they also offer good diversification depending on the make-up of the portfolio, and are either actively or passively managed by a manager. With active management, the portfolio manager chooses the securities that the fund owns and those that it excludes. While mutual funds also have certain limitations on investing, they are usually more accessible than hedge funds.
