This video provides an introduction of how hedge funds are structured, the typical fees charged by them, and how the managers get paid.

The most common structure followed by hedge funds is the general / limited partnership. In this model, the general partner will be responsible for managing the fund and will also have an investment in it. The limited partners will have their funds invested in the fund, and will be liable upto the amounts invested. The total number of partners or investors cannot be more than 99.

The general partner itself will be a limited liability company (LLC).

Hedge funds charge much higher fees comparied to the other mutual funds.