Hedge fund investors must be accredited (meaning they must have a certain amount of liquid assets
and a certain degree of investing sophistication).
Mutual fund strategies are long-only, meaning they cannot sell securities short.
Mutual funds generally do not have a performance fee; they generally charge only a management fee.
Research Analyst
Trader
Portfolio Manager
Risk Manager
Marketing or Investor Relations
Chief Financial Officer (CFO) & Chief Accounting Officer (CAO)
Below is a snapshot of a typical hedge fund structure. As the fund grows its assets under management (AUM),
it will typically look to hire additional analysts to perform fund research while leveraging other employees at the
firm.
EXHIBIT 3.1: STRUCTURE OF A HEDGE FUND