A hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio-construction and risk management techniques in an attempt to improve performance, such as short selling, leverage, and derivatives. The term “hedge” is used because these funds historically focused on hedging risk by simultaneously buying and shorting assets in a long-short equity strategy. It is a type of actively managed fund that focuses on high risk high return investments. Hedge funds invest very aggressively using leverage and shorting to try and increase their returns. They have historically charged much higher fees than mutual funds. Hedge fund is an investment vehicle that caters to high-net-worth individuals, institutional investors, and other accredited investors. The presentation gives in-depth knowledge on the topic.

John U

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