While there are no strict definitions of a private equity firm and a hedge fund, some distinct differences separate the two types of firms.

Private equity firms and hedge funds are similar in that both invest from a leveraged pool of capital normally contributed by limited partners; both compensate the management team based on a percentage of profits (typically 20%) as well as charge a fee on assets under management (typically 2%); and both are lightly regulated (as of this writing).

There have been a number of articles recently surrounding the SEC filing requirements for hedge funds. However, I have yet to see hedge fund industry statistics that are accurately reported. Hopefully, the metrics below will help present a clearer picture of the SEC registered hedge fund advisors.