A hedge fund manager is the individual or investment management firm responsible for making all investment decisions, managing the portfolio strategy, overseeing risk management, and operating a hedge fund — an alternative investment vehicle that pools capital from accredited or institutional investors and employs a broad range of sophisticated strategies (including long-short equity, global macro, event-driven, arbitrage, quantitative, and distressed debt) to generate absolute returns regardless of market direction. Hedge fund managers typically charge a '2 and 20' fee structure — a 2% annual management fee on assets under management plus a 20% performance fee on profits above a hurdle rate. In India, hedge fund-like strategies are offered through Category III Alternative Investment Funds (AIFs), regulated by SEBI. For sophisticated investors on Ventura Securities evaluating alternative investment options, understanding the hedge fund manager's investment mandate, strategy, track record, risk controls, fee structure, liquidity terms, and alignment of interests is critical to assessing the suitability and risk-adjusted return potential of any alternative fund allocation.
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