Hedge Fund: Definition, Examples, and Strategies
Key Takeaways
- Hedge funds are actively managed funds focused on alternative investments that commonly use risky investment strategies.
- Investing in a hedge fund is generally open to accredited investors with a high minimum investment or net worth.
- Hedge funds charge higher fees than conventional investment funds.
- Hedge fund strategies depend on the fund manager and relate to equity, fixed-income, and event-driven investment goals.
- A hedge fund investment is usually locked up for a year before shares can be sold.
What Is a Hedge Fund?
A hedge fund is an actively managed private investment fund whose money is pooled and managed by professional fund managers. These managers use a wide range of strategies, including leverage and…
