What Does Hedge Fund Mean?
An aggressively managed portfolio of investments that uses advanced investment strategies such as leverage and long, short, and derivative positions in both domestic and international markets with the goal of generating high returns either in an absolute sense or relative to a specified market benchmark. Legally, hedge funds most often are set up as private investment partnerships that are open to a limited number of investors and require a very large initial minimum investment. Investments in hedge funds are illiquid as they often require investors to keep their money in the fund for at least one year. Investopedia explains Hedge Fund For the most part, hedge funds (unlike mutual funds) are unregulated because they cater to sophisticated and ultrawealthy investors. In the United States, laws require that the majority of investors in a hedge fund be accredited. That is, they must earn a minimum amount of money annually and have a net worth of more than $1 million. One can think of hedg
