What is a Hedge Fund?

[WhiteHouse]

The term hedge fund was first utilized in the last part of the '50s by a correspondent (from Wall Street Journal) to depict Arthur Jones' "hedged" Investment style. The thought behind hedging is fundamentally to decrease/minimize risks that are outside your ability to control or where the managers have no uncommon understanding, utilizing shorting, subordinates or a blend thereof. Hedging rapidly makes techniques fairly perplexing; subsequently, it is hard for a non-expert to appropriately evaluate their risks (which can be both lower or higher than the risks of mutual funds). That is the reason the public authority has confined admittance of retail financial investors to hedge Funds. They may advertise only to "sophisticated financial investors".
Hedge Funds charge more than mutual funds for their servicess and are ordinarily less regulatory.

 

[Adegbindin Abdullahi]

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 and risk management techniques to improve performance such as leverage etc. They are also regarded as alternative investments

 

[Oliver 20]

A hedge funds' motivation is to expand financial backer returns and kill hazard. In the event that this design and goals sound a great deal like those of common assets, they are, however that is the place where the similitudes end. Speculative stock investments are for the most part viewed as more forceful, dangerous, and restrictive than shared assets

 

[Abisola]

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 to improve performance, such as short selling, leverage, and derivatives

 

[Adeyoola7]

Hedge funds are financial partnerships that use pooled funds and employ different strategies to earn active returns for their investors. These funds may be managed aggressively or make use of derivatives and leverage to generate higher returns

 

[Caali]

The hedge fund is an alternative investment that is worked out to protect investment portfolios from market uncertainty while generating positive returns in both up and down markets.

 

[WhiteHouse]

A hedge funds is a venture type that utilizes a wide scope of methodologies intended to shield financial backers from plunges on the lookout while as yet partaking in certain market conditions