What are conventional hedge funds?
An aggressively managed portfolio of investments that uses advanced investment strategies such as leveraged, long, short and derivative positions in both domestic and international markets with the goal of generating high returns (either in an absolute sense or over a specified market benchmark). Legally, hedge funds are most often set up as private investment partnerships that are open to a limited number of investors such as high net worth, ultra high net worth, institutional smart money, family offices, pension funds. They require a very large initial minimum investment. For instance, one of the segments they target is high net worth individuals, who are defined as those who make a investment of at least $1 million (excluding primary residence). Investments in hedge funds are illiquid as they often require investors keep their money in the fund for at least one year. – Source: www.investopedia.
