Asked by Joshua David on Jul 07, 2024
Verified
Hedge funds are typically set up as ______ and provide ______ information about portfolio composition and strategy to their investors.
A) limited liability partnerships; minimal
B) limited liability partnerships; extensive
C) investment trusts; minimal
D) investment trusts; extensive
Limited Liability Partnerships
A business structure that allows partners to have limited liabilities, which means they are not personally liable for the debts of the business.
Portfolio Composition
The breakdown of assets within an investment portfolio, classified by type, sector, risk, or other criteria.
- Explore the differential aspects of hedge funds and mutual funds with respect to their architecture, regulatory environment, and investor community.
Verified Answer
CC
Casey Cody-JacksonJul 10, 2024
Final Answer :
A
Explanation :
Hedge funds are commonly structured as limited liability partnerships to offer protection to the partners from some liabilities, and they typically provide minimal information about their portfolio composition and strategy to maintain secrecy and competitive advantage.
Learning Objectives
- Explore the differential aspects of hedge funds and mutual funds with respect to their architecture, regulatory environment, and investor community.