hedge fund

fund that invests in future commodities in order to reduce risks and losses (Economics)

A hedge fund is an investment fund structured to avoid direct regulation and taxation in major host countries and which charges a performance fee based on the increase of the value of the fund's assets. The assets of a hedge fund will usually be managed by an investment management firm based in a major financial centre. As a hedge fund is largely unregulated, its investment manager is able to deploy a wider range of investment strategies and tactics than it could for a regulated fund, and investing in a hedge fund is therefore considered to carry more risk.
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Noun
1. 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
(synonym) hedgefund
(hypernym) investment company, investment trust, investment firm, fund

A fund that may employ a variety of techniques to enhance returns, such as both buying and shorting stocks based on a valuation model.