Hedge Funds

Hedge funds are a class of investing vehicles that employ the use of one or more alternative investment strategies. Although they are designed for the more experienced and accredited investor, these investments are allowed in self-directed retirement plans.

Self-directed IRA investors can use account cash to purchase hedge fund shares. Investing in hedge funds can provide the account holder with tax-sheltered retirement income. It also provides widespread diversity for their retirement portfolio.

Hedge funds are typically made available only to sophisticated and accredited investors and, except in limited circumstances, cannot be offered or sold by means of general advertising. They are subject to regulation by the US Securities and Exchange Commission (SEC) and/or the appropriate state securities administrator. Investors should retain independent financial and/or legal counsel to evaluate the risks and merits of investments in any hedge fund before investing.

The SEC recently expanded its definition of an accredited investor. Learn about new qualifications for accredited investors.

Retirees on Pier with Family

Hedge Fund Investment Strategies


GLOBAL MACRO


DIRECTIONAL


EVENT DRIVEN


RELATIVE VALUE (ARBITRAGE)

Hedge Fund Asset Class Examples


EQUITIES


FIXED INCOME


COMMODITIES


CURRENCIES

Benefits of Investing in Hedge Funds With a Self-Directed IRA

  1. Self-directed IRAs provide tax-sheltered retirement income on returns and investments.
  2. Hedge funds can add diversity to retirement portfolios.
  3. Unlock your IRA from the traditional investment options of stocks and mutual funds.
  • OPEN AN ACCOUNT
    Direct the Investment - Private Placement

    Midland IRA’s application can be completed entirely online. You may also contact us and we will send you the paperwork.

  • FUND THE ACCOUNT
    Fund the Account

    Transfer funds from an existing IRA or rollover funds from a former employer plan. If you are eligible, you can also make an annual contribution to your IRA.

  • IDENTIFY THE HEDGE FUND
    Open a Midland Account

    Identify the hedge fund you would like to invest in and contact the manager.

  • COMPLETE SUBSCRIPTION AGREEMENT
    review & sign subscription agreement

    Complete the Subscription Agreement for the hedge fund in which you are investing.

  • DIRECT THE INVESTMENT
    Direct the Investment

    With a letter of direction, instruct Midland to send funds to the hedge fund for purchase.