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Hedge Fund

A private investment partnership that can use leverage and derivatives, take both long and short positions, and invest in many markets.

Additional Comments:

Hedge funds can succeed in any market environment, even one with sharply declining prices, because they can take advantage of many speculative strategies, including program trading, swaps, arbitrage, and selling short.

Hedge funds are commonly limited-membership, private investment groups which are comprised of funds from professional and wealthy investors. These funds are limited by Securities and Exchange Commission (SEC) regulation to sophisticated investors and small numbers of investors at any one time.

Related Terms:

Mutual Funds
Mutual funds are the most common type of pooled investment. Funds "slice and dice" many types of ...

Closed-Ended Funds
Closed-ended funds, like their more populous and popular open-ended cousins, are investment companies set up to ...

No Load Fund
Mutual Fund offered by an open end investment company that imposes no sales charge (load) on ...

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