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Hedge Fund Marketplace
Customers who are Accredited Investors or Qualified Purchasers under SEC rules can view information about independent Hedge Funds available on the Hedge Fund Marketplace page.
Who is Eligible to Invest in Participating Hedge Funds?
Customers who are Accredited Investors and Qualified Purchasers.
- US customers.
- Customers in all other countries EXCEPT Canada, India and Japan. Indian and Japanese customers are eligible only if they have IB LLC accounts.
- Advisors can invest in participating funds for their clients who are Accredited Investors and Qualified Purchasers.
- Fully Disclosed Broker sub accounts are eligible only if they are Accredited Investors and Qualified Purchasers and non-Canadian. Non-disclosed and Omnibus Broker sub accounts are NOT eligible.
- Hedge Funds who have already opened their funds to investment in the Hedge Fund Marketplace.
If you are eligible to invest in participating Funds, you will have access to the Hedge Fund Marketplace in Account Management.
IRA accounts are not eligible to invest in participating Hedge Funds.
- Eligible investors can invest a minimum of $25,000 in a Fund. Note that some Funds require larger investments.
- You can redeem a minimum of $25,000 or your remaining balance in the Fund, whichever is lower, and subject to the Fund's own requirements.
Risks of Hedge Fund Investing
All potential Hedge Fund investors should be aware of the following:
- The funds listed in our Hedge Fund Investor Site have not been registered under the securities laws of the United States, any state, or any other jurisdiction. The Hedge Fund Investor Site is not an offer to sell shares of any of the Funds. Rather, the offer to invest in the Funds may only be made by the private placement memorandum for the relevant Fund, and only to investors who meet certain eligibility requirements.
- An investment in a Hedge Fund is speculative and involves a high degree of risk. Only sophisticated, high net worth investors with a high risk tolerance should participate.
- The Hedge Funds listed on the website are independent from Interactive Brokers and Interactive Brokers will not supervise their trading decisions or be liable for losses.
Advisor Client Investments in Hedge Funds
Hedge funds can offer advisor clients who invest in their funds a discount on the hedge fund’s standard management fee to encourage investments by financial advisors and their clients. Funds may offer discounts of up to 1% of AUM and/or 5 % of profits. For details, see HFCIP Fees.
Advisors can invest in a hedge fund on behalf of an eligible client via the Dashboard.
To use the Hedge Fund Investor Site
- Log into Account Management.
- Click Investors' Marketplace > Search Services > Investing > Hedge Funds.
If you do not see the Hedge Fund Marketplace link in the menu, then you are not eligible to invest in participating Funds.
- All available Funds are displayed in a table. The name of the Fund is displayed and selectable; also displayed are annual rates of return for five years, amount of assets under management, the minimum investment required and a summary of the investment strategy. Each column is sortable and you can hover your mouse cursor over a column header for more information.
Some Funds have public articles that they have uploaded; these Funds are marked with a document icon. Click the document icon to read the article.
Click the name of the Fund in which you are interested.
The next page displays a group of expanding and collapsing sections that represent the actions you can perform.
- Click a bar to expand that section, then follow instructions on the screen where applicable (not all items listed below will appear for all participating Funds):
- Review Material Currently Posted on Site Concerning Fund - Lets you view and download PDF files uploaded by the Fund.
- Fund Details and Contact Information - Lets you view miscellaneous fund details as well as contact the Fund or request that the Fund contact you.
- Contact this Fund - Lets you contact the Fund or request that the Fund contact you.
- Invest in this Fund by transferring money from my account - Lets you transfer funds directly from your account to the Fund. Follow the instructions on the screen to request the transfer.
Note that requests for investment must be approved by the Fund Investment Manager and the Fund’s Third-Party Administrator.
- Request a redemption transferred to your
account from this Fund - Lets you request a redemption from the Fund, which is a direct transfer from the Fund to your account. Follow the instructions on the screen to request the redemption.
Note that requests for redemption must be approved by the Fund Investment Manager and the Fund’s Third-Party Administrator.
- Click Main to return to the previous screen.