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anyone know anything about mutual funds and hedge funds?
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| mndeg |
| What is the limit for market cap size which they are unable to buy? |
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| enferno |
$1,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,0
00,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,0
00,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,0
00,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,0
00,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,0
00,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,0
00,000,000,000,000,000,000,000,000,000,000,000,000,000,000.13 |
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| AndreaCKY772 |
| wish i could help you out wih that...:( |
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| djnaeblis |
| quote: | Originally posted by mndeg
What is the limit for market cap size which they are unable to buy? |
Which one are you taling about, because a mutual fund and hedge fund are two, totally different types of funds.
Hedge funds are more aggressive, and typically have a buy in limit of like.. 1mil. So, usually only available to wealthy people with a ton of money. |
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| mndeg |
i phrased it prety badly
im talking about the lower market cap that a mutual fund or hedge fund will put money in or short sell.
cause big funds aren't allowed to participate in small market caps cause they start owning large %'s of it due to all the money they have and that creates management complications |
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| riskytrader |
You still are phrasing it terribly as one honestly cannot decipher what it is you are trying to say.
If you are referring to small cap companies (not lower cap) they usually have a market capitalization of between $200 million to $2 billion depending upon which investment firm you ask.
In terms of restrictions most mutual funds have a mandate which they must follow which details what their fund is allowed to invest in and how they go about doing so. Each fund has this listed out in their prospectus and must follow those guidelines.
In terms of restrictions I do not believe there are any legal restrictions besides filing with the SEC if any particular mutual fund/company wants to purchase 10% or more of any company regardless of the size. Sometimes this acts as a deterrent for a mutual fund as they will always have to file with the SEC anytime they want to sell the stock subsequently which creates a liquidity issue.
In addition no institutional investor wants to state when they will purchase shares so being under the 10% guideline to buy stock will also raise up the price of the small cap share substantially which will in effect the price as it will rise with the buying pressure. This may just defeat the purpose of buying the small cap in the first place.
Hope that helps and PM me if you need more info. |
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