The managing director of Alex Brown, a division of Raymond James, Micah Scheinberg is based in Los Angeles, California. Having worked in the securities industry for over two decades, Micah Scheinberg has extensive experience in alternative investments such as hedge funds.
A type of pooled investment, hedge funds are operated by professional managers who control the money and returns of a limited number of partners or investors. Such investment vehicles are designed to minimize risk in the financial environment while still maximizing profit. Since capital is provided by each individual investor in the fund and then pooled together, the hedge fund manager is capable of making larger investments on behalf of the fund’s participants, thereby increasing the chances of higher returns.
With a hedge fund, investors can access a wide range of securities. Large hedge funds must register with the United States Securities Exchange Commission (SEC), but this isn’t a requirement for every fund. This gives hedge funds more freedom in how they achieve the goals of the fund manager and partners.
Since each hedge fund is structured differently, it has different goals that inform the fund manager how to invest. Some funds focus only on long equities, which means that they buy common stock and do not sell short. Meanwhile, others only focus on investing in private equity. The only unifying goal for hedge funds is that they all strive for market direction neutrality so they are capable of making money regardless of how the financial market fluctuates.
