What does hedge fund mean?

Definitions for hedge fund
hedge fund

This dictionary definitions page includes all the possible meanings, example usage and translations of the word hedge fund.

Princeton's WordNet

  1. hedge fund, hedgefundnoun

    a flexible investment company for a small number of large investors (usually the minimum investment is $1 million); can use high-risk techniques (not allowed for mutual funds) such as short-selling and heavy leveraging

GCIDE

  1. Hedge fundnoun

    a mutual fund or partnership of investors who pool large sums of money to speculate in securities, increasing the risk of such activity by using borrowed money to leverage the investments, or by selling short.

Wiktionary

  1. hedge fundnoun

    Any unregistered investment fund, often characterised by unconventional strategies (i.e., strategies other than investing long only in bonds, equities or money markets). All hedge funds are supposed to be hedged from risk; hence the name.

Wikipedia

  1. Hedge fund

    A hedge fund is an 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. Financial regulators generally restrict hedge fund marketing except to institutional investors, high net worth individuals and others who are considered sufficiently sophisticated. Hedge funds are regarded as alternative investments. Their ability to make more extensive use of leverage and more complex investment techniques distinguishes them from regulated investment funds available to the retail market, such as mutual funds and ETFs. They are also considered distinct from private-equity funds and other similar closed-end funds, as hedge funds generally invest in relatively liquid assets and are generally open-ended, meaning that they allow investors to invest and withdraw capital periodically based on the fund's net asset value, whereas private-equity funds generally invest in illiquid assets and only return capital after a number of years. However, other than a fund's regulatory status there are no formal or fixed definitions of fund types, and so there are different views of what can constitute a "hedge fund". Although hedge funds are not subject to many restrictions that apply to regulated funds, regulations were passed in the United States and Europe following the financial crisis of 2007–2008 with the intention of increasing government oversight of hedge funds and eliminating certain regulatory gaps.Although most modern hedge funds are able to employ a wide variety of financial instruments and risk management techniques, they can be very different from each other in respect of their strategies, risks, volatility and expected return profile. It is common for hedge fund investment strategies to aim to achieve a positive return on investment regardless of whether markets are rising or falling ("absolute return"). Although hedge funds can be considered risky investments, the expected returns of some hedge fund strategies are less volatile than those of retail funds with high exposure to stock markets, because of the use of hedging techniques. A hedge fund typically pays its investment manager a management fee (for example, 2% (annualised) of the net asset value of the fund), and a performance fee (for example, 20% of the increase in the fund's net asset value during a year).Hedge funds have existed for many decades, and have become increasingly popular. They have now grown to be a substantial fraction of the asset management industry, with assets totaling around $3.2 trillion as of 2018. Some hedge fund managers have several billion dollars of assets under management (AUM).

ChatGPT

  1. hedge fund

    A hedge fund is a type of investment vehicle and business structure that pools capital from accredited individuals or institutional investors and invests in a variety of assets, often with complex portfolio-construction and risk-management techniques. It operates with much greater flexibility than mutual funds and other investment funds, allowing it to engage in more diverse and higher-risk strategies to achieve high returns. Hedge funds are typically open to a limited number of investors and require a large initial minimum investment.

Wikidata

  1. Hedge fund

    Hedge funds are private, actively managed investment funds. They invest in a diverse range of markets, investment instruments, and strategies and are subject to the regulatory restrictions of their country. U.S. regulations limit hedge fund participation to certain classes of accredited investors. Hedge funds are often open-ended, and allow additions or withdrawals by their investors. A hedge fund's value is calculated as a share of the fund's net asset value, meaning that increases and decreases in the value of the fund's investment assets are directly reflected in the amount an investor can later withdraw. Most hedge fund investment strategies aim to achieve a positive return on investment regardless of whether markets are rising or falling. Hedge fund managers typically invest money of their own in the fund they manage, which serves to align their own interests with those of the investors in the fund. A hedge fund typically pays its investment manager an annual management fee, which is a percentage of the assets of the fund, and a performance fee if the fund's net asset value increases during the year. Some hedge funds have a net asset value of several billion dollars. As of 2009, hedge funds represented 1.1% of the total funds and assets held by financial institutions. As of April 2012, the estimated size of the global hedge fund industry was US$2.13 trillion.

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Numerology

  1. Chaldean Numerology

    The numerical value of hedge fund in Chaldean Numerology is: 9

  2. Pythagorean Numerology

    The numerical value of hedge fund in Pythagorean Numerology is: 2

Examples of hedge fund in a Sentence

  1. Donald Trump:

    The hedge fund guys are getting away with murder. They're making a tremendous amount of money -- they have to pay tax, i want to lower the rates for the middle class. The middle class is the one. They're getting absolutely destroyed. This country, it won't have a middle class very soon.

  2. George Soros:

    The value of the pound would decline precipitously. It would also have an immediate and dramatic impact on financial markets, investment, prices and jobs, i would expect this devaluation to be bigger and also more disruptive than the 15 percent devaluation that occurred in September 1992, when I was fortunate enough to make a substantial profit for my hedge fund investors.

  3. John Fawcett:

    We've even seen an industry outsider score a job as a 'quant' at a top hedge fund with his Quantopian track record.

  4. Oliver Barron:

    With current market volatility and weak retail investor sentiment, these hedge fund strategies would naturally lead them to sell the market ... which is against the government's intention of propping up the market.

  5. Donald Langevoort:

    There’s going to be some blood on the floor when this is all over, but that’s going to be some hedge fund blood and a lot of retail blood.


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"hedge fund." Definitions.net. STANDS4 LLC, 2024. Web. 26 Apr. 2024. <https://www.definitions.net/definition/hedge+fund>.

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