Definition of Hedge Fund

Financial Terms Beginning with H

What is a Hedge Fund

A hedge fund is a private investment fund that trades and invests in a variety of assets including securities, commodities and currencies on behalf of its clients, which are typically wealthy individuals and institutions.

A hedge fund manager is permitted to use aggressive strategies, such as leverage, swaps, arbitrage and derivatives, to maximize the returns in the hedge fund.

Glossary of Terms and Phrases

A financial dictionary or glossary is an essential tool to better understand the meaning of a specialized term or phrase. It would obviously make life much easier if everyone spoke the same language and used the same financial terms and phrases but that is not realistic.

We learn new languages to communicate with each other, transact business globally and to appreciate other cultures. Global finance is a specialized language that if understood and mastered, it will provide benefits that help to decrease risk and improve investment returns. Financial literacy is the foundation of developing good investment strategies and sound decision making.

Related Investment Terms




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