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.
Hedge Fund Investment Strategies
RELATIVE VALUE (ARBITRAGE)
Hedge Fund Asset Class Examples
Benefits of Investing in Hedge Funds With a Self-Directed IRA
- Self-directed IRAs provide tax-sheltered retirement income on returns and investments.
- Hedge funds can add diversity to retirement portfolios.
- Unlock your IRA from the traditional investment options of stocks and mutual funds.