Category: Hedge Funds

A hedge fund is an investment fund that pools capital from institutional investors or accredited investors and invests in a variety of assets, often with risk-management techniques and complex portfolio construction.

They are administered by a professional investment management firm, and usually structured as a limited liability company, limited partnership, or other similar vehicle.

Hedge funds are different from mutual funds, as their use of leverage is not capped by requlators. They are also distinct from private equity funds, as most hedge funds invest in relatively liquid assets.