What Is a Hedge Fund? Strategies, Managers, & How to Invest

Two market investors looking at a screen analyzing investing strategy and financial risks.

Hedge fund managers seek an edge with diversified strategies.

© insta_photos/stock.adobe.com

Hedge funds are one of several types of alternative investments available to high-net-worth individuals and institutions. Hedge fund managers can invest in many different types of markets, including stocks, bonds, and commodities, but they also employ complex strategies such as taking long and short positions to capture price inefficiencies across investment products and geographies.

Wealthy individuals and institutions invest in hedge funds in hopes of making higher returns than they might in public stock and bond markets. But hedge fund managers can charge hefty fees, and investors may not have ready access to their cash if and when they want to…

Source link