I am currently doing research on hedge funds and I was wondering if you could give me some direction on the following questions:-Who are the key players, especially in terms of credit-related investments? -What capabilities do hedge funds have for analyzing credit-related risk? -What are the common strategies used by hedge funds that go after credit risk? -What are the yield goals of credit-oriented hedge funds? -For how long do hedge funds typically hold their positions? -How are the hedge funds making money? What are the typical management fees they charge? Do those fees vary if the fund focuses mainly on credit risk?Thanks!

It may sound cheesy:Read Vault's guide to a career in Hedge FundsYale or some other school has a institute on Hedge funds

i'll answer the easy question.1.5-2% management fee20% performance fee (a few funds charge higher, 35-40% being the upper range, but 20% is pretty much the norm)the fees vary a little between funds but the variation is due to performance rather than the trading strategy employed. funds with a long track record of superior returns have the ability to charge more, new funds typically charge the standard 2/20.

Your question (except the fee part of the question) is very broad. Hedge funds in the credit space use a variety of strategies, which involve different instruments and time horizons. Hedge funds are playing different parts of the capital structure against each other or trading default swaps and other instruments against bonds.The time horizon is at least partially a result of the liquidity of the underlying instruments. Generally, you must hold illiquid positions longer than liquid ones. But as I suggest, the "how hedge funds making money" is really in the details. A successful fund capitalizes on the information advantage it has.