Benjamin Graham - The World's First Hedge Fund Manager

Famed value investor Warren Buffett says that his mentor possibly created the first example of what is now known as a Hedge Fund.

What Are Hedge Funds?

A Hedge Fund is an investment fund with certain unique characteristics.

For one thing, Hedge Funds are not restricted to just stocks and bonds like mutual funds. A hedge fund can also invest in real estate, derivatives, currencies etc.

Hedge Funds are also open only to investors who meet certain net worth, or annual income, requirements.

Lastly, Hedge Funds also often employ leverage and a performance-based fee structure.

What Warren Buffett Says

Buffett says that while Alfred Winslow Jones is widely credited with creating the first Hedge Fund in the late 1940s, his mentor — Benjamin Graham — possibly created the first example of what is now known as a Hedge Fund two decades earlier.

Graham Resources