What are Hedge Funds?
What are Hedge Funds?
Hedge funds are managed alternative investments that employ non-traditional strategies.
The fundamental structure of a hedge fund is a partnership or investment pool in which a fund manager invests across different equities and securities that are aligned with the goals of the funds.
Some hedge funds specialize in a specific type of investment, for example, stocks, patents, real estate, bonds and private equity.
Hedge Funds vs Mutual Funds
Although similar to mutual funds in many ways, hedge funds operate with a few key differences.
Hedge funds are able to invest in a broader range of securities, including both long and short equity positions, derivatives like swaps, options, and futures, higher financial leverages, and more. Hedge funds are usually accessible to affluent investors, or accredited investors.