Hedge funds

How many investors does a hedge fund allow to participate?Is the maximum 99?Do they also have to be accredited,meaning $1 million net worth or more,or $200,000 or more annual income for the past 2 years?

 

None of the above!
I am in a Hedge fund, and there are several hundred partners.
Some are not worth over $1MM and some are not sophisticated investors. The minimums can be quite high in some funds.

 

they all have to be acredited investors to buy in initially.

 

This is a gray area.

 

I was wondering about a friends and family type trading vechicle where no one would be accredited. Whats the legality of that?

 

Here it says that there must be less than 100 investors......http://www.investorwords.com/h1.htm#hedgefund

 

Do you believe EVERYTHING you read on a web sight?
I am in a HEDGE fund and I am telling you that is incorrect.

 

Do you work for a hedge fund or have money invested in a hedge fund?

 

Some funds (503(c) funds??) allow up to 500 accredited investors...individuals w/ over $1MM or 200K/yr income for past two years...or institutions w/ $5 MM in assets. I think this is right...but I'm not sure...whereas other funds allow up to 100 (501(c)??)...can't remember the exact names/numbers.

Large institutions can drop several million into one fund. Also, you can run on-shore and off-shore counterparts (run through a master-feeder structure) that are essentially the same fund...