Hedge fund

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A hedge fund is an investment. It is a way of investing money.^[1] Like mutual funds, hedge funds pool money from investors to try and make a profit. Unlike mutual funds, hedge funds do not have many regulations to protect investors.^[2]

Hedge fund strategies are more risky and flexible than strategies used in mutual funds. For example, they might borrow money which is called a leverage, bet on stocks they think will fall or short-selling, or use other speculative investment practices that is not often used in mutual funds.^[2]

References

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[1] ttps://www.lexico.com/en/definition/hedge%20fund^{[permanent dead link]}

[:0-2] 2.0 ^2.1 "Hedge Funds". U.S. Securities and Exchange Commission.

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