Interview Question

Business Consultant Interview Boston, MA

How much do you know about hedge funds?

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Interview Answer

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Hedge Funds are funds managed by specialized investment managers for a niche customer base. As compared to mutual funds, they are not highly regulated and therefore can use strategies like short selling to mitigate risks associated with the portfolio of assets. Hedge Funds are expected to perform at a high level even in times of recessions and are usually not compared against benchmark indexes like S&P 500. Hedge Funds as the name suggests are funds which have hedged most of the financial risks of the portfolio to achieve good performance at different times in the economic cycle.

Abbasali Tavawala on Jun 19, 2011

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