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It is a private, largely unregulated, investment that can play in both the public and private markets. It may invest both long (buying) and/or short (borrowing shares to sell first, in hopes of a decline, when it then will buy or 'cover' the short), thereby making a profit in a declining market. Minimum investments ae quite high, as are net worth reuirements. The investor is largely blind to the investments. Management fees are typically 1.5% to 3%. Managers are also entitled to keep 20% of profits.... nice gig in a good year. But they get nothing but the mgt fee in a losing year, nor do they share in ensuing gains until they get back to the 'high water' mark.
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