Is $100 million the AUM of a small or a medium hedge fund? What qualifies as a medium-sized hedge fund?
A small hedge fund’s AUM (Assets Under Management), in my professional opinion, is about $100 million.
Obviously, this depends on who you ask and the industry. Nevertheless, hedge funds with an AUM of under $100 million are typically regarded as small. Comparatively, medium-sized firms are those with $100 million to $1 billion in AUM.
My professional opinion is that the AUM (Assets Under Management) of a small hedge fund is around $100 million.
Of course, this varies depending on who you ask and the sector. However, hedge funds with an AUM of less than $100 million are frequently viewed as small. In contrast, medium-sized businesses are those with AUM between $100 million and $1 billion.
When choosing a medium-sized hedge fund, there are many things to take into account. The number of staff members at the fund is one of the most crucial variables. A small hedge fund may have fewer than 20 employees, while a medium-sized hedge fund typically has between 20 and 50 employees.
A medium-sized hedge fund is more established than a small one, and it has access to a bigger pool of investors and a track record to back it up.
As an example, when I first entered the hedge fund sector, I worked at a modest fund with a meager AUM and a small staff. The fund, however, eventually reached a $100 million level after growing over time. We were able to draw in a completely new level of investors and talent even though we were still only a medium-sized fund at the time. It was an exciting time for the business and illustrated how significant AUM can be in the world of hedge funds.
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