Hedge Funds Explained: A Beginnerโs Guide for Aspiring Quants ๐
Discover what hedge funds are, how they operate, and why they matter in the world of finance. Perfect for aspiring quants looking to deepen their understanding!

Socratica
204.9K views โข Apr 21, 2025

About this video
๐๐๐๐๐๐ ๐๐ ๐ฌ๐๐๐ฃ ๐ฉ๐๐ ๐๐ค๐ช๐ง๐จ๐ ๐ก๐๐ช๐ฃ๐๐๐๐จ:
๐ https://snu.socratica.com/quantitative-finance
What do ๐๐๐ฟ๐๐ ๐๐๐๐ฟ๐ actually doโand who gets to invest in them? This video covers how hedge funds operate, how they charge fees, what kinds of strategies they use, and who works inside them. You'll learn about stat arb, latency arbitrage, distressed debt, and what it really means to be an accredited or qualified investor.
๐ ๐ช๐ข๐ฅ ๐ฉ๐ค ๐๐๐๐๐๐ง๐๐ฃ๐ฉ ๐ฉ๐ค๐ฅ๐๐๐จ:
0:00 Intro - hedge funds vs IRA or 401K
0:58 How are Hedge Funds structured?
1:46 Who can invest with hedge funds?
2:02 Where did the name come from?
2:54 Statistical Arbitrage (stat arb)
3:36 Latency Arbitrage
4:48 Distressed Debt
5:51 How do Hedge Funds make money?
6:49 More behind the scenes details
7:57 Who are the investors?
8:48 How to find Hedge Funds (they don't advertise)
9:28 Join our Aspiring Quant mailing list to receive infrequent, useful communications
๐ https://snu.socratica.com/quantitative-finance
๐๐จ ๐ฉ๐๐๐ง๐ ๐ ๐พ๐ค๐ช๐ง๐จ๐?
If youโre serious about becoming a quant, we're building a course that doesn't waste your time. No filler. Just clean code, focused projects, and a deep dive into the tools used by professionals.
Connect with us to learn when the Quantitative Finance course launches:
๐ https://snu.socratica.com/quantitative-finance
๐๐ ๐๐๐พ๐๐๐๐๐๐ฟ
Paul Wilmott Introduces Quantitative Finance
๐ https://amzn.to/3Qe8zab
The Big Short (movie)
๐ฌ https://amzn.to/4jbl5DJ
๐ผ๐ฝ๐๐๐ our Instructor:
Michael Harrison earned his BS in Math from Caltech, and did his graduate work in Math at UC Berkeley and University of Washington, specializing in Number Theory. A self-taught programmer, Michael taught both Math and Computer Programming at the college level. He applied this knowledge as a financial analyst (quant) and as a programmer at Google.
๐๐๐ฝ๐๐พ๐๐๐ฝ๐ to Socratica:
๐ฆ http://bit.ly/SocraticaSubscribe
๐๐๐๐๐๐๐ Socratica on Patreon:
๐ ฟ๏ธ https://www.patreon.com/socratica
Music Licensed with SoundStripe:
Codes:
U1HDBTW9LB7XDWWR
NNJN0R1UJ3YHDWPZ
NU5LC5PPRH39IA5P
11UQACVBUBU7IBM2
๐ https://snu.socratica.com/quantitative-finance
What do ๐๐๐ฟ๐๐ ๐๐๐๐ฟ๐ actually doโand who gets to invest in them? This video covers how hedge funds operate, how they charge fees, what kinds of strategies they use, and who works inside them. You'll learn about stat arb, latency arbitrage, distressed debt, and what it really means to be an accredited or qualified investor.
๐ ๐ช๐ข๐ฅ ๐ฉ๐ค ๐๐๐๐๐๐ง๐๐ฃ๐ฉ ๐ฉ๐ค๐ฅ๐๐๐จ:
0:00 Intro - hedge funds vs IRA or 401K
0:58 How are Hedge Funds structured?
1:46 Who can invest with hedge funds?
2:02 Where did the name come from?
2:54 Statistical Arbitrage (stat arb)
3:36 Latency Arbitrage
4:48 Distressed Debt
5:51 How do Hedge Funds make money?
6:49 More behind the scenes details
7:57 Who are the investors?
8:48 How to find Hedge Funds (they don't advertise)
9:28 Join our Aspiring Quant mailing list to receive infrequent, useful communications
๐ https://snu.socratica.com/quantitative-finance
๐๐จ ๐ฉ๐๐๐ง๐ ๐ ๐พ๐ค๐ช๐ง๐จ๐?
If youโre serious about becoming a quant, we're building a course that doesn't waste your time. No filler. Just clean code, focused projects, and a deep dive into the tools used by professionals.
Connect with us to learn when the Quantitative Finance course launches:
๐ https://snu.socratica.com/quantitative-finance
๐๐ ๐๐๐พ๐๐๐๐๐๐ฟ
Paul Wilmott Introduces Quantitative Finance
๐ https://amzn.to/3Qe8zab
The Big Short (movie)
๐ฌ https://amzn.to/4jbl5DJ
๐ผ๐ฝ๐๐๐ our Instructor:
Michael Harrison earned his BS in Math from Caltech, and did his graduate work in Math at UC Berkeley and University of Washington, specializing in Number Theory. A self-taught programmer, Michael taught both Math and Computer Programming at the college level. He applied this knowledge as a financial analyst (quant) and as a programmer at Google.
๐๐๐ฝ๐๐พ๐๐๐ฝ๐ to Socratica:
๐ฆ http://bit.ly/SocraticaSubscribe
๐๐๐๐๐๐๐ Socratica on Patreon:
๐ ฟ๏ธ https://www.patreon.com/socratica
Music Licensed with SoundStripe:
Codes:
U1HDBTW9LB7XDWWR
NNJN0R1UJ3YHDWPZ
NU5LC5PPRH39IA5P
11UQACVBUBU7IBM2
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Video Information
Views
204.9K
Likes
5.8K
Duration
10:05
Published
Apr 21, 2025
User Reviews
4.7
(40)