Entity: HEDGE-FUND
A hedge fund is a type of investment partnership that uses high-risk, speculative methods to obtain large profits. It combines money from multiple investors to invest in securities or other types of investments.
HEDGE FUND
Etymology
The word 'hedge' in hedge fund refers to placing limits on risk, similar to a line of bushes around the perimeter of a field.
Definition
A hedge fund is an investing group usually in the form of a limited partnership that employs speculative techniques in the hope of obtaining large capital gains.
Historical Context
Hedge funds have existed for many decades and have become increasingly popular. As of 2021, hedge funds total around $3.8 trillion in assets.
Cultural Significance
Hedge funds are a substantial portion of the asset management industry, known for their high-risk, high-reward investment strategies.
Related Concepts
Hedge funds are similar to mutual funds but typically have more flexibility in their investment strategies.
See Also
An investing group usually in the form of a limited partnership that employs speculative techniques in the hope of obtaining large capital gains.