Hedge funds have been talked about by so many people and yet many people really have no idea what they are or what is a hedge fund manager. A hedge fund is a fund set up privately with partners and the investments go outside of traditionally investments. Hedge funds will invest in gaming if the odds are good enough and they will make money.

A hedge fund manager will pool enough money together to get bigger control of their investment. There have been managers who would try to push public companies like McDonalds a certain direction because they fell they can profit more and the thing about it is that the fund will have a control stake of the stock. In the commodities funds will push the markets around so much that anyone involved with the futures will always ask and wonder what are the funds doing. These are just some ways hedge funds work.

One of the greatest known hedge fund manager would be George Soros “the man who broke the Bank of England” traded currency. His best move came in September of 1992 when the Bank of England failed to raise interest rates and Soros shorted $10 billion worth of pounds. Soros give a big enough hit to push the Bank of England’s money out of the European Exchange Rate Mechanism and to devalue the pound. Bringing this bank to its knees and walking away with $1 billion has made Soros a well known investor.

Hedge fund managers charge a fee of 10 – 50 percent of the profit and this has put their earnings ahead of many Fortune 500 CEO’s. For 2004 the top 25 hedge fund managers made a average of $251 million while the top CEO’s made a average $10 million.

Top 10 Hedge Fund Managers

$1.02 Billion Edward Lampert

$670 Million James Simons

$550 Million Bruce Kovner

$450 Million Steven Cohen

$420 Million David Tepper

$305 Million George Soros

$300 Million Paul Tudor Jones II

$240 Million Kenneth Griffin

$225 Million Raymond Dalio

$205 Million Israel Englander

I understand many people dream of becoming a CEO, but I wonder if some dreams may turn into becoming a hedge fund manager.