write a 150 word good job response and question to a classmate's discussion that says "Hedge funds are an alternative to traditional investments where capital is raised from groups of high-net worth individuals (accredited investors) and invested in riskier strategies with the goal of achieving above average returns. Among their more distinct features are the minimum initial investment amounts, lockup periods, lack of transparency, lack of regulation, and high performance fees. The typical fee structure for hedge funds is usually 2/20 (2% management fee; 20% performance fee). Hedge funds may take long and short positions in equities while using leverage to purchase additional assets including derivatives, currencies, commodities, and structured products. The illiquid nature of the investments is the reason for lockup periods ranging from months to years. However, the returns on investments in hedge funds can far outpace traditional securities, even private placements. Typically investors in hedge funds are considered limited partners, and due to their additional risk and lack of regulation hedge funds are not solicited to the general public. In contract, mutual funds which are also pooled investment vehicles are available to the public and are much more transparent. Each fund has a stated investment objective, prospectus

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