How to invest in a hedge fund?
To invest in a hedge fund, you must be an accredited investor. In practical terms, this usually means having a net-worth of over one million dollars, excluding your primary residence.
This means you must have over a million dollars excluding the value of any home/apartment that you own and live in.
This rules out the average investor, and hence for most of us the closest we can get is to observe the hedge fund's portfolio and follow some of its investments.
You must meet the legal definition of an accredited investor to invest in a hedge fund. You must either have a sufficiently high income of over $200,000 over the past two years or own over $1 million in assets.
In addition to these requirements, many funds have their own criteria, minimum deposit rules and withdrawal limitations. Be sure to read the fund's prospectus to learn about all its policies and research the hedge fund manager and his track record.
Some hedge funds have stopped accepting new clients, and are therefore closed to new investors. You would have to find those that are still taking new investing capital. Hedge funds are not allowed to advertise their services to the general public, hence you would have to search on your own to find a fund suitable for your risk profile.
After doing all of the above, the procedure usually involves applying and filling out some paperwork.