A hedge fund is an investment vehicle open only to a limited range of investors. The fund invests in stocks, commodities, and debt, amongst other types of investments. It is characterized by a wider range of trading and investment activities and traditional long-only investment funds. These funds seek to hedge some risk associated with their […]
Hedge funds use methods like derivatives and short selling to hedge risk present in their investments in commodities, debt, and stocks. Investors must meet certain criteria to be eligible to participate in a hedge fund. Individuals who manage hedge funds receive a performance fee for their efforts. It is not an easy task and those […]