Our operation was an example of what had come to be known as a hedge fund. A hedge fund in the United States is simply a private limited partnership managed by one or more general partners (each of whom risks the loss of their entire net worth should things go badly wrong) and a group of investors, or limited partners, whose loss is limited to the amount they commit.
General partners are personally liable? For what % of investors’ loss? Or only to unwind if overleveraged and receiving collateral calls? Hedge funding sounds even less fun all of a sudden ;)
