That's what I was planning to do once I graduate from college. For people to invest they must be considered accredited. In the state of New York(and I believe across the country), they must make at least $200,000 per year, with a guaranteed salary of at least that the following year, or they must have a net worth of at least 1 Million. There are some exceptions I think, such as inheriances and such. They must be willing to give at least $25,000 initially. Hedge funds are generally underlegislated, which may change in the near future. Most take a percentage of the amount invested as a management fee(1-4%), and then take a percentage of the profits(as much as 55% in some cases). This though usually makes hedge fund managers to take higher risks to make more $$ for themselves. They trade in derivatives, many short stocks, and somtimes in futures and leverage. That's the simple version.
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