Hedge Fund Definition
A hedge fund is an investment fund that pools capital from accredited investors and invests in a variety of assets, often with complex strategies. Hedge funds are generally open-ended, meaning they can issue new shares or redeem existing shares at any time. Hedge funds are typically managed by professional money managers who invest the fund’s capital in a variety of ways to achieve the desired return.
Hedge funds have become increasingly popular in recent years as investors seek to diversify their portfolios and access higher-returning investments. While hedge funds can offer potential rewards, they also come with risks, which is why it’s important to understand what they are before investing.
