Due to the unregulated nature of hedge funds, hedge funds are required to provide only minimal disclosure to investors (and even less disclosure to non-investors). Hedge funds often have a one, two, or three year lockup periods, while mutual funds generally have daily liquidity. Hedge fund fees are generally higher than mutual fund fees, because on top of a management fee (typically 2%), hedge funds also charge a performance fee (typically 20% of profits.) |
